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BLAW Chapter 16

Terms in this set (13)

The party owing a debt under a contract is the:

a. obligor.
b. assignee.
c. assignor.
d. obligee.
a. obligor.
Which of the following is true about the vesting of an incidental beneficiary's rights?

a. States are consistent in their rules as to when vesting occurs.
b. An incidental beneficiary was not meant to benefit from the contract, thus he acquires no rights
c. Regardless of whether an incidental beneficiary's rights have vested, the promisor and promisee may, by later agreement, vary those rights.
d. Vesting cannot require the third party to change position in reliance on the promise made for his benefit.
b. An incidental beneficiary was not meant to benefit from the contract, thus he acquires no rights
When a contract is intended to benefit a third person, such a person is a(n):

a. assignor.
b. incidental beneficiary.
c. assignee.
d. intended beneficiary.
d. intended beneficiary.
Sometimes the promisee's primary intent is to discharge a duty to a third party. Which of the following describes that type of contract?

a. A contract between the owner of a building and the contractor stating that the contractor will pay the contractor's employees at a specified rate.
b. A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy.
c. A contract between a governmental unit and business for services to be rendered to area citizens.
d. A contract between an employer and a union representing the employees which contract is made for the benefit of the employees.
b. A contract where the insured names a bank with which he has a loan as the beneficiary of a life insurance policy.
The transfer of a contract right to a third party is known as a(n):

a. novation.
b. assignment.
c. delegation.
d. implied warranty.
b. assignment.
Which of the following is/are true concerning the requirements for the form of an assignment?

a. An assignment may be in any form.
b. Statutes may require certain assignments be in writing or executed in a particular form.
c. Any words, written or spoken, that show an intention to transfer or assign will be respected.
d. All of these are correct.
d. All of these are correct.
A(n) __________ is an intended beneficiary of a contract who receives the benefits of the contract as a gift.

a. incidental beneficiary
b. donee beneficiary
c. assignor
d. creditor beneficiary
b. donee beneficiary
A(n) __________ is a substitution for an old contract with a new one that either replaces an existing obligation with a new obligation with a new obligation or replaces an original party with a new party.

a. delegation
b. novation
c. assignment
d. partial assignment
b. novation
A(n) __________ stands exactly in the position of the __________.

a. assignee; beneficiary
b. assignor; assignee
c. assignee; assignor
d. None of these are correct.
c. assignee; assignor
A clear and specific contractual prohibition against the assignment of rights __________ enforceable at common law.

a. is
b. is not
c. common law is silent about this matter
d. None of these are correct.
a. is
Not all classes of beneficiaries receive rights in the underlying contract. Which one does not?

a. Incidental beneficiaries.
b. Intended beneficiaries.
c. Creditor beneficiaries.
d. Donee beneficiaries.
a. Incidental beneficiaries.
The holding in Speelman v. Pascal was that:

a. assignments cannot be made of sums that are not presently due but are expected to become due in the future.
b. a gratuitous assignment is terminated by the assignor's death, even if the assignor made an effective delivery of the assignment prior to his death.
c. personal contracts are not assignable
d. a gratuitous assignment becomes irrevocable upon the assignor's making an effective delivery of the assignment to the assignee.
d. a gratuitous assignment becomes irrevocable upon the assignor's making an effective delivery of the assignment to the assignee.
One issue before the court in the Aldana v. Colonial Palms Plaza, Inc. case was:

a. whether the Tenant should have paid the money to Aldana.
b. whether Colonial was acting in good faith when they paid the Tenant.
c. whether the notice from Aldana to Colonial was adequate.
d. whether the anti-assignment clause in the lease prevented the Tenant from assigning the construction allowance to Aldana.
d. whether the anti-assignment clause in the lease prevented the Tenant from assigning the construction allowance to Aldana.
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