Question 1

Which of the following is a true statement regarding an assignee's acceptance of assigned rights?

Accepted Answer

A)  An assignee must agree to accept assigned rights,and there is a strict protocol for doing so.
B)  A creditor beneficiary must accept assignment of rights,but there is no requirement that a donee beneficiary do so.
C)  An assignee may only decline an assignment if a delegation of duties is also involved.
D)  A donee beneficiary must accept assignment of rights,but there is no requirement that a creditor beneficiary do so.
E)  An assignee may decline an assignment if he has not agreed to it and declines in a timely fashion after learning of it.F) A) and B)
G) B) and D)

Question 2

A donee beneficiary is a type of incidental beneficiary.

Accepted Answer

A) True 
 B)False

Question 3

What would be the most likely result if Justin sues Gabby for the $10,000 payment?

Accepted Answer

A)  Justin will win unless Gabby can prove that Justin knew that she did not want him to do the portraits.
B)  Justin will lose unless Justin can prove that he was unaware that Gabby did not want him to do the portraits.
C)  Gabby will win because the portrait was personal in nature and could not be assigned.
D)  Justin will lose because Gabby's only obligation is to pay Tori.
E)  Justin will win only if Justin did a good job on the portraits.F) A) and B)
G) A) and C)

Question 4

What type of third-party beneficiary is Bianca?

Accepted Answer

A)  Creditor and incidental
B)  Intended and donee
C)  Intended and creditor
D)  Donee and incidental
E)  Creditor and doneeF) B) and C)
G) A) and E)

Question 5

Simone assigned her rights under a contract to Juan.Forgetting that she took this action,she later assigns her rights under the contract to Kai.Both Juan and Kai try to claim the right to the contract.The state gives Juan the rights.Which rule did the state apply?

Accepted Answer

A)  The French rule
B)  The English rule
C)  The last-assignment-in-time rule
D)  The first-assignment-in-time rule
E)  The American ruleF) A) and E)
G) B) and D)

Question 6

If a contract states "I assign all of my rights under the contract," in most cases the assignment will be considered an assignment of rights but not duties.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true of an attempt to assign the rights to payment?

Accepted Answer

A)  The rights to payments can only be assigned if a contract is created under the statute of frauds.
B)  The rights to payment can only be assigned if a contract is personal in nature.
C)  The rights to payment can never be assigned if a contract is personal in nature.
D)  The rights to payment can never be assigned.
E)  The rights to payment can always be assigned.F) A) and D)
G) B) and C)

Question 8

Sally and Matteo enter into a contract in which Matteo agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting.Matteo paints the picture of a ship,but assigns the right to collect payment of the $100 to Felipe.Is Matteo's assignment legally valid?

Accepted Answer

A)  No because the right to payment can never be assigned.
B)  No,because the contract was one for personal service.
C)  Yes,because the rights to payment can always be assigned.
D)  No,because it would increase the burden on Sally to pay Felipe instead of Matteo.
E)  Yes,because the contract was not one for personal services.F) A) and D)
G) B) and E)

Question 9

Which of the following is a contractual party who agrees to do something for the other party?

Accepted Answer

A)  Assignee
B)  Assignor
C)  Obligee
D)  Boundee
E)  ObligorF) B) and D)
G) A) and B)

Question 10

The state of New York does not grant a donee beneficiary the right to enforce a contract unless the promisee is connected to the donee through a ________ relationship.

Accepted Answer

A)  Valid
B)  Marital
C)  Recognized
D)  Familial
E)  SubstantialF) C) and D)
G) B) and E)

Question 11

A third party who is intended to directly benefit from a contract made by two contracting parties is called an intended beneficiary.

Accepted Answer

A) True 
 B)False

Question 12

Halle and Rose enter into a contract in which Rose agrees to sell her property to Halle so Halle can build a hotel.Maria owns the restaurant next door and will benefit from the opening of the hotel because it will bring in many new customers.Rose subsequently breaches the contract so Halle cannot but the property and build the hotel.Can Maria sue Rose for breach of contract?

Accepted Answer

A)  Yes,because Maria was an intentional beneficiary to the contract.
B)  Only if Halle does not sue.
C)  Yes,because Maria was an intended beneficiary to the contract.
D)  Only if Halle also sues.
E)  No,because Maria was an incidental beneficiary to the contract.F) B) and D)
G) A) and E)

Question 13

When parties include a[n] clause in their contract,the parties are attempting to limit their ability to assign their rights under the contract.

Accepted Answer

A)  Integration
B)  Severability
C)  Antiassignment
D)  Anticontract
E)  AntiobligationF) B) and E)
G) D) and E)

Question 14

The party who makes the promise that benefits the third party is the ________ in a third-party beneficiary contract.

Accepted Answer

A)  Promisor
B)  Obligee
C)  Promisee
D)  Assignor
E)  ObligorF) A) and E)
G) C) and D)

Question 15

Most countries do not grant third-party rights to contracts.

Accepted Answer

A) True 
 B)False

Question 16

A party to a contract who transfers his or her duty to perform to a third party who is not part of the original contract is called a[n] ________.

Accepted Answer

A)  Assignor
B)  Transferor
C)  Delegator
D)  Delegatee
E)  AssigneeF) All of the above
G) C) and E)

Question 17

Which of the following,if any,is needed in order for an assignment to be valid?

Accepted Answer

A)  UCC 4-305 Form
B)  UCC 2-301 Form
C)  No form is required.
D)  Business 2-547 Form
E)  Business 4-298 FormF) D) and E)
G) B) and D)

Question 18

A donee beneficiary may enforce rights under a contract only against the _ .

Accepted Answer

A)  Assignee
B)  Obligor
C)  Promisee
D)  Initial contracting parties
E)  PromisorF) A) and E)
G) B) and E)

Question 19

Jimmy and Penny enter into a contract.Jimmy transfers his rights under the contract to Luis.Jimmy is an:

Accepted Answer

A)  Relator
B)  Assignor
C)  Transferor
D)  Transferee
E)  AssigneeF) C) and E)
G) C) and D)

Question 20

What would be the most likely result if Justin sues Harry for the $4,000 payment?

Accepted Answer

A)  Justin will win because the right to receive payment could be validly assigned.
B)  Harry will win because the portrait was personal in nature and payment for it could not be assigned.
C)  Justin will lose unless Justin can prove that he was unaware that Harry did not want the benefits assigned.
D)  Harry will win because he did not expressly agree to the assignment.
E)  Justin will win unless Harry can prove that Justin knew that Harry did not want the benefits assigned.F) B) and D)
G) None of the above

Exam 19: Third-Party Rights to Contracts

Which of the following is true of an attempt to assign the rights to payment?

Correct Answer
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The state of New York does not grant a donee beneficiary the right to enforce a contract unless the promisee is connected to the donee through a ________ relationship.

Correct Answer
verified

Jimmy and Penny enter into a contract.Jimmy transfers his rights under the contract to Luis.Jimmy is an:

Correct Answer
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Which of the following is a true statement regarding an assignee's acceptance of assigned rights?

Correct Answer
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What would be the most likely result if Justin sues Harry for the $4,000 payment?

Correct Answer
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What would be the most likely result if Justin sues Gabby for the $10,000 payment?

Correct Answer
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A third party who is intended to directly benefit from a contract made by two contracting parties is called an intended beneficiary.

Correct Answer
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Most countries do not grant third-party rights to contracts.

Correct Answer
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When parties include a[n] clause in their contract,the parties are attempting to limit their ability to assign their rights under the contract.

Correct Answer
verified

A donee beneficiary may enforce rights under a contract only against the _ .

Correct Answer
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Which of the following is a contractual party who agrees to do something for the other party?

Correct Answer
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Correct Answer
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Sally and Matteo enter into a contract in which Matteo agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting.Matteo paints the picture of a ship,but assigns the right to collect payment of the $100 to Felipe.Is Matteo's assignment legally valid?

Correct Answer
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If a contract states "I assign all of my rights under the contract," in most cases the assignment will be considered an assignment of rights but not duties.

Correct Answer
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A donee beneficiary is a type of incidental beneficiary.

Correct Answer
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A party to a contract who transfers his or her duty to perform to a third party who is not part of the original contract is called a[n] ________.

Correct Answer
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Simone assigned her rights under a contract to Juan.Forgetting that she took this action,she later assigns her rights under the contract to Kai.Both Juan and Kai try to claim the right to the contract.The state gives Juan the rights.Which rule did the state apply?

Correct Answer
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What type of third-party beneficiary is Bianca?

Correct Answer
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The party who makes the promise that benefits the third party is the ________ in a third-party beneficiary contract.

Correct Answer
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Which of the following,if any,is needed in order for an assignment to be valid?

Correct Answer
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Exam 19: Third-Party Rights to Contracts

Which of the following is true of an attempt to assign the rights to payment?

Correct AnswerverifiedShow Answer

The state of New York does not grant a donee beneficiary the right to enforce a contract unless the promisee is connected to the donee through a ________ relationship.

Correct AnswerverifiedShow Answer

Jimmy and Penny enter into a contract.Jimmy transfers his rights under the contract to Luis.Jimmy is an:

Correct AnswerverifiedShow Answer

Which of the following is a true statement regarding an assignee's acceptance of assigned rights?

Correct AnswerverifiedShow Answer

What would be the most likely result if Justin sues Harry for the $4,000 payment?

Correct AnswerverifiedShow Answer

What would be the most likely result if Justin sues Gabby for the $10,000 payment?

Correct AnswerverifiedShow Answer

A third party who is intended to directly benefit from a contract made by two contracting parties is called an intended beneficiary.

Correct AnswerverifiedShow Answer

Most countries do not grant third-party rights to contracts.

Correct AnswerverifiedShow Answer

When parties include a[n] clause in their contract,the parties are attempting to limit their ability to assign their rights under the contract.

Correct AnswerverifiedShow Answer

A donee beneficiary may enforce rights under a contract only against the _ .

Correct AnswerverifiedShow Answer

Which of the following is a contractual party who agrees to do something for the other party?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Sally and Matteo enter into a contract in which Matteo agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting.Matteo paints the picture of a ship,but assigns the right to collect payment of the $100 to Felipe.Is Matteo's assignment legally valid?

Correct AnswerverifiedShow Answer

If a contract states "I assign all of my rights under the contract," in most cases the assignment will be considered an assignment of rights but not duties.

Correct AnswerverifiedShow Answer

A donee beneficiary is a type of incidental beneficiary.

Correct AnswerverifiedShow Answer

A party to a contract who transfers his or her duty to perform to a third party who is not part of the original contract is called a[n] ________.

Correct AnswerverifiedShow Answer

Simone assigned her rights under a contract to Juan.Forgetting that she took this action,she later assigns her rights under the contract to Kai.Both Juan and Kai try to claim the right to the contract.The state gives Juan the rights.Which rule did the state apply?

Correct AnswerverifiedShow Answer

What type of third-party beneficiary is Bianca?

Correct AnswerverifiedShow Answer

The party who makes the promise that benefits the third party is the ________ in a third-party beneficiary contract.

Correct AnswerverifiedShow Answer

Which of the following,if any,is needed in order for an assignment to be valid?

Correct AnswerverifiedShow Answer

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