BUL Ch 16

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.

A

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.

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. an assignee. c. an obligee. d. a delegator.

A

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.

A

Marco and Fred enter into a contract for the sale of Marco's apartment for which Fred agrees to pay him $100,000. Marco cannot prohibit Fred from transferring his right to the ownership of the apartment because such a prohibition is a. against public policy. b. immoral. c. unconscionable. d. a crime.

A

Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts, he asks Rachel to do the cutting and trimming. This transfer of duties is a. a delegation. b. an assignment. c. a third party beneficiary contract. d. prohibited.

A

Robert enters into a contract with Claire. Claire agrees to paint Robert's living room for $500. Claire is the a. obligor. b. obligee. c. assignee. d. assignor.

A

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.

B

Forrest makes and sells furniture. Forrest and Glenda enter into a contract for the delivery of Forrest 's products to Glenda's Gear retail locations for which she agrees to pay the invoiced price. Forrest transfers the right to payment under the contract to Haulers Trucks & Trailers. This transfer is a. a delegation. b. an assignment. c. a third party beneficiary contract. d. prohibited.

B

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest a. automatically. b. if she demonstrates her consent to the promise at Hilda's request. c. if Indemnity attempts to modify the terms of the contract. d. on the occurrence of the event for which the insurance was procured.

B

Jack contracts to provide lawn-mowing services to Lee. Jack can¬not dele¬gate this duty a. because it is a personal service contract. b. without continuing to be liable. c. without Lee's consent. d. without providing lawn-mowing services to Kim.

B

Jayson and MaryElise enter into a contract. Jayson agrees to mow MaryElise's yard every week for the summer. MaryElise is the a. obligor. b. obligee. c. assignee. d. assignor.

B

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. a delegate. b. an intended beneficiary. c. an incidental beneficiary. d. an assignor.

B

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.

B

Ozzie contracts for the sale of 500 shares of stock in Premium Quality, Inc., to Ray, with payment to go to Scholar University to pay Thalia's tuition. The contract reserves to Ozzie and Ray the right to modify its terms. Scholar's right to payment is a. not affected by the reservation. b. subject to any change that Ozzie and Ray make. c. limited only if Thalia agrees to any changes. d. terminated by the reservation.

B

Revenue & Sales Corporation and Software Solutions, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $4,500. Software Solutions transfers the right to payment under the contract to Creditline Company. Creditline is a. an assignor. b. an assignee. c. an obligee. d. a delegate.

B

Stephanie's sale of rights she has under a contract with Runway Retail, Inc., to buy the retailer's clothing overstock is a. a delegation. b. an assignment. c. a third party beneficiary contract. d. none of the choices.

B

Will owes Jenny $1,000. Brad owes Will $1,000. Will unconditionally assigns his rights to Jenny. Will's right to the $1,000 is then a. unchanged. b. extinguished. c. incidental. d. assigned to a court.

B

A contract between Slim and Goldie may not be assigned if it a. does not expressly permit assignment. b. involves a sale of goods. c. involves personal services. d. is oral.

C

Bonita and Chad enter into a contract for Chad to plant trees on Bonita's property for which she agrees to pay $500. When Chad's schedule conflicts, he contacts Dirk, to whom he "assigns all rights under the contract." Chad is a. absolved of any liability under the contract. b. in breach of the contract with Bonita. c. liable to Bonita if Dirk does not perform. d. liable to Dirk for inducing a prohibited contract.

C

Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Eatery Café is next to Carol's Home Store. The remodeling is a gift from Ben to Carol. Refer to Fact Pattern 16-1. Delta will realize a profit from the sale of prod¬ucts to Four-Square to remodel Carol's store. Delta is a. a delegatee. b. an assignee. c. an incidental beneficiary. d. an intended beneficiary.

C

Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Eatery Café is next to Carol's Home Store. The remodeling is a gift from Ben to Carol. Refer to Fact Pattern 16-1. The value of Eatery's property will increase after Carol's store is remodeled. Eatery is a. a delegatee. b. an assignee. c. an incidental beneficiary. d. an intended beneficiary.

C

Phillip assigns his rights under a contract with Maria to his college roommate, John. Neither Phillip nor John notifies Maria of the assignment. The assignment a. will not be effective until notice is given to Maria. b. will become effective after thirty days even if no notice is given to Maria. c. is immediately effective. d. can be circumvented.

C

Regional Steel, Inc., and Overland Transport Company enter into a con¬tract. Smooth Oil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of a. assignment. b. delegation. c. privity. d. vesting.

C

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 con¬tract cannot be assigned because a. Richly did not consent to the assignment. b. Richly did not receive adequate consideration for the assignment. c. the assignment will materially increase the risk of nonperformance. d. Town Builders was not an original party to the deal.

C

Tristan promises to paint Katy's house in exchange for Lila's promise to plant trees on Tristan's property. This is a. a delegation. b. an assignment. c. a third party beneficiary contract. d. none of the choices.

C

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the bene¬ficiary. This is a. a delegation. b. an assignment. c. a third party incidental beneficiary contract. d. a third party intended beneficiary contract.

D

Eli owes Martin $10,000. Martin assigns the claim to Jack. Jack does not notify Eli of the assignment. A week later, Martin assigns the same claim to Allen. Allen immediately notifies Eli of the assignment. Jack a. has priority to payment in all states. b. has priority to payment in states that follow the English rule. c. does not have priority to payment in any state. d. has priority to payment in most states.

D

Four-Square Construction Company enters into a contract with Ben to remodel Carol's Home Store, using products from Delta Building Supplies. Eatery Café is next to Carol's Home Store. The remodeling is a gift from Ben to Carol. 26. Refer to Fact Pattern 16-1. Carol is a. a delegatee. b. an assignee. c. an incidental beneficiary. d. an intended beneficiary.

D

Grady and Hannah contract with Isaac to transfer the ownership of Grady and Hannah's Mesa Ranch to Isaac. This is a. a delegation. b. an assignment. c. a third party beneficiary contract. d. an alienation.

D

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an antidelegation clause, the contract can prohibit and prevent the transfer of a. only duties that are personal in nature. b. only duties that are impersonal in nature. c. no duties under the contract. d. all duties under the contract.

D

Leonardo contracts to install automatic watering troughs in Kendall's dairy barn. Leonardo 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. Leonardo only. d. Jake or Leonardo.

D

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.

D

Michel, the owner of Nature's Refuge Café, and Olin enter into a contract under which Olin agrees to design an outdoor addition to the café for which Michel agrees to pay $3,000. This contract may not be assigned if a. the assignment will significantly change the risk of nonperformance. b. the assignment is expressly prohibited by the terms of the contract. c. the contract is uniquely personal in nature. d. any of the choices.

D

Pat, a world famous musician and composer, agrees to give ten piano les¬sons to Quinn in exchange for $1,000. Pat's attempt to delegate his con¬tract to Ruth, an in¬experienced pianist, will probably be a. permitted because contracts may be freely delegated. b. permitted because the contract is concerned with music lessons. c. prohibited because contracts may not be freely delegated. d. prohibited because Pat and Ruth have very different skill levels.

D