Business Law Ch.17
d
A contract between Laser Equipment, Inc., and Medical Center contains a clause stating that any assignment is "void." This ordinarily prohibits a. only an assignment that would change the obligor's risk. b. no assignment. c. only an assignment of contract rights to personal services. d. any assignment.
b
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. a delegatee. b. an incidental beneficiary. c. an assignee. d. an intended beneficiary.
d
Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is a. a delegation. b. a third party incidental beneficiary contract. c. an assignment. d. a third party intended beneficiary contract.
a
Bill and Charlene enter into a contract for the clearing, plowing, and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000. Bill transfers his duty under this contract to Dewey. Dewey is a. a delegatee. b. a delegator. c. an assignee. d. an obligee.
d
Brock enters into a contract with Casey's Coin-op Laundry to move a suite of dryers from one of Casey's locations to another. Brock subsequently transfers this duty to Darin. Darin is a. a third-party beneficiary. b. an assignee. c. an obligee. d. a delegatee.
b
Business Loans, LLC, is a creditor beneficiary in a deal that involves Carla's Hair Salon and Dani's Nails. Like most creditor beneficiaries, Business Loans is a. an incidental beneficiary. b. an intended beneficiary. c. a donee beneficiary. d. an original contracting party.
d
D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is a. an assignment. b. an alienation. c. a delegation. d. a third party beneficiary contract.
d
Fact Pattern 17-1 Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Refer to Fact Pattern 17-1. Delta will realize a profit from the sale of products to Four-Square to remodel Carol's store. Delta is a. an assignee. b. a delegatee. c. an intended beneficiary. d. an incidental beneficiary.
c
Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. Notice by Jo to Ian of the assignment a. must be given within thirty days. b. must be given immediately. c. is not required. d. must be given within a reasonable time.
d
Ilene and Jerry enter into a contract under which Ilene agrees to provide grounds keeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of a. only duties that are impersonal in nature. b. no duties under the contract. c. only duties that are personal in nature. d. all duties under the contract.
d
Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is a. liable to Joy for breach of contract. b. absolved of any liability under the contract. c. liable to Leza for inducing a prohibited contract. d. liable to Joy if Leza does not perform.
b
Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty a. without paying Miles at least one monthly fee. b. without continuing to be potentially liable. c. under any circumstances. d. without Miles's consent.
d
Lestor and MaryElise enter into a contract. Lestor agrees to mow MaryElise's yard every week for the summer. MaryElise is a. the obligor. b. the assignor. c. the assignee. d. the obligee.
a
Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is a. an intended beneficiary. b. an assignor. c. an incidental beneficiary. d. a delegatee.
b
Mai is a third party beneficiary under a contract between Novia and Opie. Novia and Opie can modify or rescind their contract without Mai's consent a. at any time. b. before Mai's rights have vested. c. at no time. d. after Mai's rights have vested.
b
Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because a. Retail did not receive adequate consideration for the assignment. b. the assignment will materially increase the risk of nonperformance. c. Tough Road was not an original party to the deal. d. Retail did not consent to the assignment.
c
Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, he asks Otis to do the cutting and trimming. This transfer of duties is a. an assignment. b. alienation. c. a delegation. d. a third party beneficiary contract.
a
Phillip assigns his rights under a contract with Maria to his college roommate, Owen. Neither Phillip nor Owen notifies Maria of the assignment. The assignment a. is immediately effective. b. will become effective after thirty days even if no notice is given to Maria. c. can be circumvented. d. will not be effective until notice is given to Maria.
a
Pico, a famous chef, agrees to give ten culinary lessons to Rhoda in exchange for $1,200. Pico's attempt to transfer his contract duties to Sven, an unknown sous-chef, will probably be a. prohibited if Pico and Sven have different skill levels. b. prohibited because contracts may not be freely delegated. c. permitted because contracts may be freely delegated. d. permitted because the contract is concerned with cookery.
b
Rachel and Stuart enter into a contract for the sale of Rachel's textbook at the end of the fall semester for which Stuart agrees to pay $75. Rachel wants to transfer her right to payment for the book to Terry. This transfer is a. an alienation. b. an assignment. c. a third-party beneficiary contract. d. a delegation.
