Chapter 17 Questions

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False
Only parties who actually signed a contract may sue on it.
A. True
B. False
True
Intended beneficiaries and creditor beneficiaries can be the same person.
A. True
B. False
False
Whenever a contract is intended to benefit a third person, the third person is to referred to as a delegator.
A. True
B. False
True
Bruce is a donee beneficiary to a life insurance contract if he is listed as the beneficiary.
A. True
B. False
False
It is necessary that a third-party beneficiary be identified by name.
A. True
B. False
False
A third person automatically has the status of an intended third-party beneficiary regardless of the parties' intentions at the time of contracting.
A. True
B. False
True
The rights of a third-party beneficiary always cannot be destroyed without that beneficiary's consent.
A. True
B. False
False
The beneficiary of a life insurance policy is not subject to any policy restrictions that had been agreed to between the insured and the insurance company.
A. True
B. False
False
If a municipality contracts with a contractor to pave a street, the homeowners on that street are third-party beneficiaries of the contract.
A. True
B. False
False
An assignment is a transfer of duties, and a delegation is a transfer of rights.
A. True
B. False
FalseAn assignee of a contract can bring suit on the contract only in the name of the assignor. A. True B. FalseFalseGenerally, an assignment must be in writing and signed by both parties. A. True B. FalseFalseOnly written words that show an intention to transfer or assign will be given the effect of an assignment. A. True B. FalseTrueAn assignment, if otherwise valid, takes effect the moment it is made. A. True B. FalseTrueThe rights of an intended third-party beneficiary are destroyed if the contract is discharged in bankruptcy proceedings. A. True B. FalseTrueA person entitled to receive money may generally assign that right to another person. A. True B. FlaseFalseThe right to file a legal claim may not be assigned. A. True B. FalseFalseAn incidental beneficiary has the right to sue either party if there is a breach of contract. A. True B. FalseTrueWhen work is guaranteed by one who repairs a building, the owner, on selling the building, may assign the guarantee to the buyer. A. True B. FalseTrueIn general, one may assign rights if that does not cause the obligor's duties to increase or change materially. A. True B. FalseFalseA person who has a right ot buy on credit can transfer that right to a close relative. A. True B. FalseTrueAn assignee's rights are the same as those that had been possessed by the assignor. A. True B. FalseFalseThe making of an assignment relieves the assignor of any and all obligations existing under the original contract. A. True B. FalseFalseWhen a lease is assigned, the assignee becomes the sole obligor for rent payments, and the original lessee is discharged from the lease. A. True B. FalseFalseAn obligor required to render a performance under a contract can transfer the duty to perform to another person whenever desired. A. True B. FalseTrueUnder the UCC, an assignment of all the assignor's rights under a contract generally is held to be both an assignment of rights and a delegation of duties. A. True B. FalseTrueWhen duties under a contract are delegated, the party making the delegation remains responsible for the performance of the contract just as though no delegation had been made. A. True B. FalseMay bring suit on and enforce the contract.A third-party beneficiary: A. may be obligated to pay for services rendered B. may bring suit on and enforce the contract C. must consent to the contract D. must be identified by nameBeneficiary contract.A life insurance contract is a third-party: A. beneficiary contract B. assignment contract C. payment contract D. performance contractIs bound thereby.If there is a time limitation or any other restriction in a contract, a third-party beneficiary: A. may ignore it B. may void it C. is bound thereby D. must consent to be bound thereby before it is effectiveAutomatically when either party dies.A third-party beneficiary contract may be amended: A. without the consent of the beneficiary B. by operation of law C. regardless of whether the contract allows modifications without the beneficiary's consent. D. automatically when either party diesA contract to repair sewers in front of Macy's Department Store.Which of the following is not a third-party beneficiary contract? A. a contract in which A hires B to give A's niece piano lessons B. a contract to repair sewers in front of Macy's Department Store C. a life insurance contract with a named beneficiary D. a contract between X and Y for Y to install a new door on Z's homeAn incidental beneficiary.In a contract in which a tenant borrowed money from a bank for the purpose of adding a bathroom to her apartment, the landlord is: A. a direct beneficiary B. in privity of contract with the tenant C. a third-party beneficiary D. an incidental beneficiaryCannot sue to enforce the contract.An incidental beneficiary of a contract: A. can sue to enforce the contract B. cannot sue to enforce the contract C. is a beneficiary specifically named in the contract D. is an assignee of the direct beneficiaryAssignor.The party making an assignment is called the: A. assignee B. assignor C. obligor D. successorIs a transfer of rights.An assignment of royalties to a song: A. is a contract B. requires consideration C. is a transfer of rights D. is not enforceableStill in effect.When a buyer assigns the right to goods under a contract, the buyer's liability to make payment to the seller is: A. transferred to the third party B. terminated C. still in effect D. shared equally with the third partyDonee beneficiary.Jones has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Jones' mother is a(n): A. incidental beneficiary B. donee beneficiary C. creditor beneficiary D. assigneeAn incidental beneficiary.Alberto enters into a contract with a contractor to build a parking garage in Gotham City. Stop- N-Go will greatly benefit from this contract since Alberto's parking garage is adjacent to Stop-n-Go. In this scenario Stop-n-Go is: A. an incidental beneficiary B. a partial beneficiary C. a donee beneficiary D. an implied beneficiaryExactly in the position of the assignor.In general, an assignee stands: A. in a position subordinate to the assignor B. exactly in the position of the assignor C. in a position superior to the assignor D. in a position similar to, but not equal to, the assignorThere is a manifestation of the intent to assign.An assignment is valid only if: A. it is in a particular form B. it is written C. there is a manifestation of the intent to assign D. the assignment is paid for by the assigneeDoes not relieve.The making of an assignment _______ the assignor of any obligation of the contract. A. relieves B. conditionally relieves C. does not relieve D. dischargesAndy has a duty to teach an accounting class at a community college during the fall semester.Which of the following duties would most likely not be delegable? A. Joe has a contractual duty to pay Izzie $50. B. Ken has a contractual duty to deliver 50 bushels of corn to Martin by October 1. C. Andy has a duty to teach an accounting class at a community college during the fall semester. D. Josh has a duty to mow Genelle's lawn at least once a week.Novation.The substitution of an old contract for a new one that replaces an obligation or a party for another is a: A. novation B. warranty C. assignment D. delegation of dutiesPerformance of the duty is standardized and nonpersonal.An obligor may delegate his or her duties to perform under a contract when the: A. performance of the duty is standardized and nonpersonal. B. obligor is unable to perform his or her duties. C. contract is silent as to the right of assignment. D. obligor is an expert in his or her specialized duties under the contract.Both a transfer of rights and a delegation of duties.Unless language or circumstances indicate the contrary, a general assignment is: A. a transfer of property only B. both a transfer of rights and a delegation of duties C. a delegation of duties only D. a transfer of rights onlyThe delegatee performs the work improperly.The delegator of construction duties remains liable if: A. the delegatee performs the work properly, but the obligee did not approve of the delegation. B. the delegatee performs the work improperly. C. the obligee objects in writing to the delegatee's performance of the work, even if the delegatee performs the work properly. D. the value of the contract is $500 or more and the delegatee performs the work properly.