Worksheet 17.1: Assignments and Delegations

3. The ___(1)___ assigns rights to the ___(2)___ . Once the rights are assigned, the ___(3)___ must perform for the new ___(4)___.

(1) assignor (2) assignee (3) obligor (4) obligee

14. A delegation relieves the delegator of his or her obligations to perform under the contract. a. True b. False

b. False

6. Assignments related to land transfers must be done orally. a. True b. False

b. False

8. When an anti-assignment clause exists in a contract, a court will not enforce it because it is against public policy. a. True b. False

b. False

11. Giving notice is not legally required to establish the validity of an assignment, but it is a good idea for which of the following two reasons? a. Priority issues may arise when more than one person receives an assignment of the same rights. b. There is potential for fraudulent misrepresentation. c. The assignor might run off with the funds. d. There is the potential for discharge by performance to the wrong party.

a. Priority issues may arise when more than one person receives an assignment of the same rights. d. There is the potential for discharge by performance to the wrong party.

12. Duties cannot be assigned, but they can be delegated. a. True b. False

a. True

4. The assignee's rights are subject to the defenses that the obligor has against the assignor. a. True b. False

a. True (The assignee only takes the rights that the assignor had.)

10. The term alienation refers to: a. transferring ownership of land. b. transferring ownership of goods. c. transferring ownership of personal property to foreigners. d. transferring ownership of personal property to a corporation.

a. transferring ownership of land.

15. Courts normally construe a contract term that "assigns all rights" as: a. an assignment of rights only. b. a delegation of duties only. c. an assignment of rights and a delegation of duties. d. neither an assignment of rights nor a delegation of duties.

c. an assignment of rights and a delegation of duties.

5. Generally, an assignment can be done: a. orally only. b. in writing only. c. orally or in writing.

c. orally or in writing.

1. Traditionally, only parties to a contract had rights and liabilities under the contract. This was known as the principle of ______.

privity of contract

9. A contract cannot forbid the assignment of the right to receive ___(1)___. Assignments also cannot be restricted for the transfer of ___(2)___ , also called a restraint against ___(3)___. A contract cannot prohibit the assignment of checks or promissory notes, also called ___(4)___ . The right to receive ___(5)___ in a contract for the sale of ___(6)___ also can be assigned, even if the contract forbids it.

(1) funds (2) real estate (3) alienation (4) negotiable instruments (5) damages (6) goods

13. Delegation is ineffective when the duties are ___(1)___ in nature, when performance by a third party will vary ___(2)___ from the expected performance, or when the contract ___(3)___ delegation.

(1) personal (2) significantly (3) prohibits

7. Rights cannot be assigned if the assignment is ___(1)___ by statute, if the contract is for ___(2)___ , if the assignment will ___(3)___ the risk or duties of the obligor, or if the contract ___(4)___ the assignment.

(1) prohibited (2) personal services (3) significantly change (4) forbids

2. Assignment

Assignment: Transferring all the rights arising under a contract to another person,

2. Delegation

Delegation: Transferring all of the duties arising under a contract to another person