Chp 16 - Third Party Rights
1. Musical Production Company and Nora enter into a contract for Nora to
write six songs for which Musical agrees to pay her. Nora transfers her
right to payment under the contract to Omni Entertainment Agency.
Nora is
a. a delegator.
b. an assignor.
c. a payor.
d. a righter.
2. Riley and Sheila enter into a contract for the sale of Riley’s condominium
to Sheila. Sheila transfers her right to be recorded as the owner of the
property to her daughter Tricia. This transfer is
a. a delegation.
b. an assignment.
c. an accord and satisfaction.
d. a negotiation.
3. Clem attempts to free himself from the duties of his contract with Dru by
telling Dru to find someone else to perform them. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices.
4. Bret and Cory enter into a contract for the sale of Bret’s textbook at the
end of the fall semester for which Cory agrees to pay Bret $60. Cory
wants to transfer her right to payment for the book to Del. This transfer
a. is prohibited.
b. may be oral or written.
c. must be implied.
d. must be in writing.
5. Commercial Shipping, Inc., and Dock Services Corporation enter into a
contract for Dock to load Commercial’s trucks for which Commercial
agrees to pay Dock. Dock transfers its duty to load the trucks to East
Harbor Transport Company. Dock is
a. a delegator.
b. an assignor.
c. a payor.
d. a righter.
6. Milo and Nate enter into a contract for the closing of a sale of Milo’s
warehouse. When Nate’s schedule conflicts, he asks Ollie to perform his
duties at the closing. This transfer of duties is
a. a delegation.
b. an assignment.
c. an accord and satisfaction.
d. a negotiation.
7. A contract between Computers, Inc., and Digital Corporation contains a
clause stating that any assignment is “void.” This effectively prohibits
a. any assignment.
b. no assignment.
c. only an assignment that does not include payment of
consideration.
d. only an assignment that would increase the risk of
nonperformance.
8. Reba and Sly enter into a contract by which Reba promises to deliver
newly printed marketing brochures to Sly. Reba later transfers her duty
under the contract to Troy. Reba is
a. a delegator and an obligor.
b. a delegator only.
c. an obligor only.
d. none of the choices.
9. Basil, a world-famous chef, signs a contract to give lessons in French
cooking to Marge. Basil wants to transfer his duties under the contract
to Harv, the operator of a hot dog concession. The transfer is
a. valid.
b. valid only if Harv is a highly regarded barbecue chef.
c. not valid because performance of the contract depends on Basil’s
unique skills.
d. not valid only if Marge detests barbecued foods.
10. Julio contracts to provide lawn-mowing services to Kevin for $140 per
month. Julio cannot transfer this duty
a. under any circumstances.
b. without continuing to be potentially liable.
c. without Kevin’s consent.
d. without paying Kevin at least one monthly fee.
11. Frank and Green Agri-Ship, Inc., enter into a contract for Green to
transport a silo of soybeans for which Frank agrees to pay Green. When
Green’s schedule conflicts, Green contacts Hybrid Crop Transport
Company, to which Green “assigns all rights under the contract.” This
transfer is
a. an assignment and a delegation.
b. an assignment only.
c. a delegation only.
d. neither an assignment nor a delegation.
12. Betty assigns her right to payment of a loan to Cody. Cody is
a. a creditor beneficiary.
b. a debtor beneficiary.
c. a donee beneficiary.
d. a donor beneficiary.
13. Jen is a third party beneficiary under a contract between Kyla and Leo.
Kyla and Leo can modify or rescind their contract without Jen’s consent
a. at any time.
b. at no time.
c. only after Jen’s rights have vested.
d. only before Jen’s rights have vested.
Fact Pattern 16-B1 (Questions B14–B17 apply)
Bayside Construction Company enters into a contract with Clio to remodel
Dewey’s Home Store, using products from Eagle Building Supplies. Fresh Food
Cafe is next to Dewey’s Home Store. The remodeling is a gift from Ben to
Dewey.
14. Refer to Fact Pattern 16-B1. Halfway through the project, Bayside
refuses to finish the job. The contract can be enforced against Bayside by
a. Clio only.
b. Clio or Dewey only.
c. Clio, Dewey, or Eagle only.
d. Clio, Dewey, Eagle, or Fresh Food.
15. Refer to Fact Pattern 16-B1. Dewey is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
16. Refer to Fact Pattern 16-B1. The value of Fresh Food’s property will
increase after Dewey’s store is remodeled. Fresh Food is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
17. Refer to Fact Pattern 16-B1. Eagle will realize a profit from the sale of
products to Bayside to remodel Dewey’s store. Eagle is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.
18. Dina and Elle agree that Elle can satisfy a preexisting debt owed to Dina
by paying the money directly to Fava. The designation of this contract as
a third party beneficiary contract is determined by the intent to benefit
a. Dina, Elle, and Fava.
b. Dina only.
c. Elle only.
d. Fava only.
19. Jon promises to paint Key’s house in exchange for Lila’s promise to plant
trees on Jon’s property. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. not a delegation, an assignment, or a third party beneficiary
contract.
20. Ron makes a contract with Stu that indirectly benefits Tim, although
neither Ron nor Stu intended that result. Tim is
a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. none of the choices.