Quizzes-Law1-OC-Fall2014
Chapter 16 – 3rd Party Rights Quiz
1. Merry Music Inc. and Nayda enter into a contract for Nayda to write six songs for which Merry Music agrees to pay her. Nayda transfers her right to payment under the contract to Omni Artists Agency. In the transfer of rights, Nayda is
a. a delegator.
b. an assignor.
c. an obligor.
d. an alien.
2. Qiana has the right under a contract with Runway Retail, Inc., to buy the retailer’s clothing overstock. Qiana’s sale of this right to Sade’s Style House is
a. a delegation.
b. an assignment.
c. prohibited.
d. a third-party beneficiary contract.
3. Bobbie enters into a contract with Claire, who agrees to paint Bobbie’s studio apartment for $500. Claire is the
a. obligor.
b. obligee.
c. assignee.
d. assignor.
4. Orchid and Peony enter into a contract for the sale of Orchid’s textbook at the end of the fall semester for which Peony agrees to pay Orchid $75. Peony wants to transfer her right to payment for the book to Queenie. This transfer
a. is prohibited.
b. may be oral or written.
c. must be implied.
d. must be in writing.
5. Illya owes Jenny $1,000. In a separate deal, Kasey owes Illya $1,000. Illya unconditionally assigns his rights in the deal with Kasey to Jenny. Illya’s right to the $1,000 is then
a. unchanged.
b. extinguished.
c. incidental.
d. assigned to a court.
6. A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is “void.” This ordinarily prohibits
a. any assignment.
b. no assignment.
c. only an assignment of contract rights to personal services.
d. only an assignment that would change the obligor’s risk.
7. Richly Merchandise, Inc., contracts with Stand-Rite Contractors to build a store. Stand-Rite assigns the contract to Town Builders, which has a poor record of completing projects. Richly could most successfully argue that the contract cannot be assigned because
a. Richly did not consent to the assignment.
b. Richly did not receive adequate consideration for the assignment.
c. an assignment will significantly increase the risk of nonperformance.
d. Town Builders was not an original party to the deal.
8. Devon and Edmond enter into a contract for the closing of a sale of Devon’s recording studio. When Edmond’s schedule conflicts, he asks Ferdie to perform his duties at the closing. This transfer of duties is
a. a delegation.
b. an assignment.
c. prohibited.
d. a negotiation.
9. Uri and Victor enter into a contract by which Uri promises to deliver business cards, advertising banners, and other marketing materials to Victor. Uri later transfers his duty under the contract to Wren. Uri is
a. a delegator and an obligor.
b. a delegate and an obligee.
c. an assignor and an assignee.
d. none of the choices.
10. Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty
a. under any circumstances.
b. without continuing to be potentially liable.
c. without Miles’s consent.
d. without paying Miles at least one monthly fee.
11. Julia, a world-famous chef, signs a contract to give lessons in French cooking to Kyle. Julia wants to transfer her duties under the contract to Leila, a short-order cook at Mom’s Café. The transfer is
a. valid because the performance required is of a nonpersonal nature.
b. valid if Leila is a highly regarded short-order cook.
c. not valid because performance depends on Julia’s personal skills.
d. not valid if Kyle does not hold Leila in high regard.
12. Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for Beneficial to transport a truckload of hay for which Animal Feed agrees to pay. Due to schedule conflicts, Beneficial contacts Crop Transport Company, to which Beneficial “assigns all rights under the contract.” This transfer is
a. an assignment and a delegation.
b. an alienation and a negotiation.
c. an obligation and a cancelation.
d. prohibited.
13. Leon contracts to install automatic watering troughs in Kendall’s dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. Kendall can sue
a. no one.
b. Jake only.
c. Leon only.
d. Jake or Leon.
14. Jean promises to paint Katy’s house in exchange for Lila’s promise to plant trees on Jean’s property. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices.
Fact Pattern (Questions 15–18 apply)
Able Contractors, Inc., enters into a contract with Beau to repair, rebuild, and remodel Coastal Marina & Boardwalk, using products from Delta Lumber & Marine. Eatwell Café is next to Coastal Marina.
15. Refer to Fact Pattern above. Halfway through the project, Able Contractors refuses to finish the job. The contract can be enforced against Able Contractors by
a. Beau only.
b. Beau or Coastal Marina only.
c. Beau, Coastal Marina, or Delta Lumber only.
d. Beau, Coastal Marina, Delta Lumber, or Eatwell Café.
16. Refer to Fact Pattern above. Coastal Marina is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
17. Refer to Fact Pattern above. The value of Eatwell Café’s property will increase after Coastal Marina store is refurbished. Eatwell Café is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
18. Refer to Fact Pattern above. Delta Lumber will realize a profit from the sale of products to Bayside to remodel Coastal Marina. Delta Lumber is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
19. Mai is a third party beneficiary under a contract between Novia and Otis. Novia and Otis can modify or rescind their contract without Mai’s consent
a. at any time.
b. at no time.
c. after Mai’s rights have vested.
d. before Mai’s rights have vested.
20. App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max and ten other student interns. With respect to the contract, Max is
a. an intended beneficiary.
b. an incidental beneficiary.
c. a delegatee.
d. an assignee
Comments (0)
You don't have permission to comment on this page.