BL ch.17
Drew and Bella bought a large lot with two homes on it, one for them and one for Bella's aging mother, Lynette. They hire an interior designer to redecorate the homes. In the contract, they refer to the second home as "Lynette's home" and state that the interior design of the home is exclusively Lynette's decision. Lynette does not sign the contract, but does send lovely thank-you notes two weeks later to the interior designer and to Drew and Bella. Lynette: a. is an intended third-party beneficiary whose rights vested when she sent the thank-you note. b. is an intended third-party beneficiary whose rights vested when the contract was signed. c. is an intended third-party beneficiary whose rights will vest when the designer meets with her to discuss plans. d. is an incidental third-party beneficiary without rights.
a. is an intended third-party beneficiary whose rights vested when she sent the thank-you note.
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. Halfway through the project, Four-Square refuses to finish the job. The contract can be enforced against Four-Square by a. Ben or Carol's. b. Carol's only. c. none of the choices. d. Ben only.
a. Ben or Carol's.
Marta owes Carly $5,000 under a contract for maid services that Carly performed. Carly owes her landlord Alec $6,000 in rent. Carly wants to assign the right to receive the $5,000 from Marta to Alec, but the contract between Marta and Carly contains a clause prohibiting its assignment. If Carly assigns the rights anyway, a court will most likely: a. honor the clause prohibiting assignment only if the assignment was in writing. b. not honor the clause prohibiting assignment. c. allow an alienation. d. honor the clause prohibiting assignment.
b. not honor the clause prohibiting assignment.
Frank owes Anderson $500. Frank is the obligor. Anderson, as the obligee, assigns the right to receive the $500 to his daughter Jemma. Jemma is now: a. the assignor and cannot enforce the contract against Frank. b. the assignee and can enforce the contract against Frank. c. the obligor and can enforce the contract against Frank. d. the obligor and can enforce the contract against Anderson.
b. the assignee and can enforce the contract against Frank.
Steel, Inc., and Transport Company enter into a contract. UniOil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of a. delegation. b. privity. c. assignment. d. alienation.
b. privity.
A case involving a contract with multiple third-party beneficiaries is brought to court. In determining which third-party beneficiaries are intended, and which are incidental beneficiaries, the court is likely to apply the: a. fairness and equality rule. b. beneficiary test. c. reasonable person test. d. substantial performer rule.
c. reasonable person test.
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.
c. is not required.
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 obligee. d. the assignee.
c. the obligee.
Douglas and Audrey promise to buy their twenty-year-old son, Max, a car when he turns twenty, provided he studies at least one hour every day during the school year. Max's best friends, Hayden and Jasmin, are very excited about the new car, and Max has told them that they can ride with him all over town once he gets it. Max fulfills his end of the bargain, but Douglas and Audrey change their mind and do not buy the car. Max, Hayden, and Jasmin all sue Douglas and Audrey for breach of contract. What is likely true? a. Max, Hayden, and Jasmin will lose. b. Max, Hayden, and Jasmin will win. c. Hayden and Jasmin will win, but Max will not. d. Max will win, but Hayden and Jasmin will not.
d. Max will win, but Hayden and Jasmin will not
Dustin's father, Forrest, enters into a life insurance contract that gives Dustin $75,000 when Forrest dies. Dustin is: a. a delegator. b. a substantial performer. c. an assignor. d. an intended third party beneficiary.
d. an intended third party beneficiary.
Mark sings bass for a famous jazz quartet, but he is feeling very tired from all his world travel. He decides to take a vacation and calls his friend Tristan, who is also a famous singer and can sing all the same notes. Tristan agrees to take Mark's place on a two-week tour of China so that Mark can take his much-needed vacation. They write up an agreement where Mark delegates his duty to perform with the group to Tristan. This is: a. not a valid delegation because services cannot be delegated. b. a valid delegation because Tristan is a professional singer capable of singing all of the parts. c. a valid delegation because it is in writing. d. not a valid delegation because Mark's performance is based on his personal skills.
d. not a valid delegation because Mark's performance is based on his personal skills.
Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty a. under any circumstances. b. without Miles's consent. c. without paying Miles at least one monthly fee. d. without continuing to be potentially liable
d. without continuing to be potentially liable
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. a delegation. b. a third party beneficiary contract. c. alienation. d. an assignment.
a. a delegation.
Uri and Victor enter into a contract by which Uri promises to deliver business cards, advertising banners, and other marketing materials to Victor. Uri later transfers his duty under the contract to Wren. Uri is a. a delegator. b. an assignor. c. an assignee. d. a delegatee.
a. a delegator.
Check My Work Revenue & Sales Corporation and Software, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $64,500. Software transfers the right to payment under the contract to CreditLine LLC. CreditLine is a. an assignee. b. an assignor. c. a delegatee. d. a third-party beneficiary.
a. an assignee.
Judy has the duty under a contract to pick up trash from Marc's front yard. Ricky owes Judy a favor, so she delegates her duty under the contract to him. It is a valid delegation. Marc: a. can refuse to let Ricky pick up the trash and demand that Judy delegate to someone else. b. cannot refuse to let Ricky pick up the trash. c. can refuse to let Ricky pick up the trash and insist that Judy do it. d. can refuse to let Ricky pick up the trash, and then charge Judy a fee for trying to delegate the duty.
b. cannot refuse to let Ricky pick up the trash.
Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. In most states, Kendall can sue a. Leon only. b. Jake or Leon. c. no one. d. Jake only.
b. Jake or Leon.
Check My Work Merry Music Inc. and Nina enter into a contract for Nina to write six songs for which Merry Music agrees to pay her. Nina transfers her right to payment under the contract to Omni Artists Agency. In the transfer of rights, Nina is a. a delegator. b. an assignor. c. an obligor. d. a third party beneficiary.
b. an assignor.
A contract between Laser Equipment, Inc., and Medical Center contains a clause stating that any assignment is "void." This ordinarily prohibits a. no assignment. b. any assignment. c. only an assignment of contract rights to personal services. d. only an assignment that would change the obligor's risk.
b. any assignment.
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. absolved of any liability under the contract. b. liable to Joy if Leza does not perform. c. liable to Leza for inducing a prohibited contract. d. liable to Joy for breach of contract.
b. liable to Joy if Leza does not perform.
Gavin takes out an insurance policy on her car. Gavin can assign his policy to a third party a. as long as he does so in writing. b. under no circumstances. c. under any circumstances. d. if a court approves the assignment
b. under no circumstances.
Ferris owns an apartment in an apartment complex. The apartment complex rules require the owner of each apartment to keep it in reasonable condition, and they stipulate that failure to do so is grounds for action against the owner by the apartment complex or a tenant. Erica rents Ferris' apartment. During her first year of renting, many appliances in the apartment break, and there are repeated incidents of leaking through the roof. Ferris does nothing to fix the apartment. Erica sues Ferris, who claims he has no contractual duty to Erica. A court will likely find that: a. Erica is a donee beneficiary, therefore Ferris has a contractual obligation to her. b. Erica is an incidental beneficiary, therefore Ferris has a contractual obligation to her. c. Erica is a creditor beneficiary, therefore Ferris has a contractual obligation to her. d. Erica is a contractual beneficiary, therefore Ferris has a contractual obligation to her.
c. Erica is a creditor beneficiary, therefore Ferris has a contractual obligation to her.
Rebecca owns a vacant lot. For years, it has produced nothing but weeds, which she has struggled to keep mowed. She has considered selling it, but it has decreased in value over the years, and she does not want to sell it at a loss. Lou owns the adjoining parcel of land and announced his intention to build a shopping center on the land. This would cause Rebecca's land to triple in value. Lou now says that he may not build the shopping center, and Rebecca threatens to sue if he does not go ahead with his original plans. In this situation, Rebecca is: a. a donee beneficiary. b. a creditor beneficiary. c. an incidental beneficiary. d. a vested beneficiary.
c. an incidental beneficiary.
Asa has a contract with Phil to provide fortune-telling services at Phil's daughter's birthday party. Phil's daughter decides she does not want to have a fortune teller at her birthday party, so Phil tries to assign the right to Asa's services to his neighbor Steve. Steve: a. can enforce the contract with Asa only if there is written documentation of Phil assigning the rights to Steve. b. can enforce the contract with Asa only if he pays double the originally agreed-upon price. c. cannot enforce the contract with Asa because rights to receive personal services cannot be assigned. d. can enforce the contract with Asa because Phil has assigned the rights to him.
c. cannot enforce the contract with Asa because rights to receive personal services cannot be assigned.
Jared contracts with Wilson, who is a lawyer in a large firm, to do some legal work. There is an antidelegation clause in their contract stipulating that Wilson must be the lawyer who handles Jared's work. If Wilson becomes overwhelmed with work: a. he can delegate his work for Jared to any other lawyer. b. he can delegate some of his work for Jared to another lawyer, as long as Wilson does at least fifty percent of the work. c. he cannot delegate his work for Jared to any other lawyer, even one in the same firm. d. he can delegate his work for Jared to another lawyer, as long as the other lawyer is in the same firm.
c. he cannot delegate his work for Jared to any other lawyer, even one in the same firm.
Rudy and his publisher require Katherine's expertise in writing a chapter of a book that will be published under Rudy's name. They sign a contract in which Katherine agrees to write the chapter. If Katherine then delegates her obligation to write the chapter to Dana, the delegation: a. will be allowed based on the doctrine of alienation. b. will probably be effective, even though the duty involved personal services. c. will probably not be effective, because the duty involved personal services. d. is not a delegation at all; it is an assignment.
c. will probably not be effective, because the duty involved personal services.
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. an obligee. b. a delegator. c. a delegatee. d. an assignee
c. a delegatee.
D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is a. an alienation. b. a delegation. c. a third party beneficiary contract. d. an assignment.
c. a third party beneficiary contract.
Check My Work 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. a third party intended beneficiary contract. d. an assignment.
c. a third party intended beneficiary contract.
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. a third-party beneficiary contract. b. a delegation. c. an assignment. d. an alienation.
c. an assignment.
Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is a. a delegatee. b. an assignor. c. an incidental beneficiary. d. an intended beneficiary.
c. an incidental beneficiary.
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 delegatee. b. an incidental beneficiary. c. an intended beneficiary. d. an assignor.
c. an intended beneficiary.
Jocelyn hires Collin to paint the fence around her property. Collin is very busy and is owed a favor by Levi, another painter. Collin delegates his duty to paint the fence to Levi. This is: a. a valid delegation because any service can be delegated. b. not a valid delegation because it is a personal service. c. not a valid delegation because services are always personal in nature and cannot be delegated. d. a valid delegation because the duty is mechanical and nonpersonal in nature.
d. a valid delegation because the duty is mechanical and nonpersonal in nature.
Samantha, a famous artist, has a contract with Alec to paint his portrait for $6,000. Samantha is very busy and wants to delegate her duty to complete the painting to Patty, her top student and a very talented artist. If Alec objects, a court likely will: a. honor the delegation because, as a general rule, delegations are allowed. b. honor the delegation, only if the delegation was in writing. c. not honor the delegation because, as a general rule, delegations are not allowed. d. not honor the delegation because the contract is based on personal skill.
d. not honor the delegation because the contract is based on personal skill.
Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves a. rights under Ivy's insurance policy against Ben's failing to perform. b. a right whose transfer is otherwise expressly prohibited by statute. c. a right to Ben's services. d. a right to receive payment.
d. a right to receive payment.
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. Allen a. does not have priority to payment in any state. b. has priority to payment in all states. c. has priority to payment in most states. d. has priority to payment in states that follow the English rule
d. has priority to payment in states that follow the English rule
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 because contracts may not be freely delegated. b. permitted because the contract is concerned with cookery. c. permitted because contracts may be freely delegated. d. prohibited if Pico and Sven have different skill levels.
d. prohibited if Pico and Sven have different skill levels.
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. Tough Road was not an original party to the deal. c. Retail did not consent to the assignment. d. the assignment will materially increase the risk of nonperformance.
d. the assignment will materially increase the risk of nonperformance.