Ch12 Third Parties and Contracts

Question 1

Person not party to contract but whom parties intended to benefit.

Answer 1

Involving a Third Party: Third-Party Beneficiary

Question 2

Third-party can enforce contract against promisor.

Answer 2

Involving a Third Party: Third-Party Beneficiary

Question 3

Termination of a new contract and substitution of a new one with same terms but a new party.

Answer 3

Involving a Third Party: Novation

Question 4

New obligor is solely liable.

Answer 4

Involving a Third Party: Novation

Question 5

Conveyance of rights in a contract to a person not a party.

Answer 5

Involving a Third Party: Assignment

Question 6

Assignment of rights depends on their nature and terms of the contract.

Answer 6

Involving a Third Party: Assignment

Question 7

Transfer of duties without rights.

Answer 7

Involving a Third Party: Delegation

Question 8

Delegated party is fully liable.

Answer 8

Involving a Third Party: Delegation

Question 9

Assignment and delegation can be specified in the contract.

Answer 9

Involving a Third Party: Delegation

Question 10

No noticed needed for assignment to be effective.

Answer 10

Notice of an Assignment.

Question 11

Generally, law gives priority in the order the assignments were made.

Answer 11

Notice of an Assignment.

Question 12

Made by either by operation of law or act of parties.

Answer 12

Form of the Assignment

Question 13

If original contract is written, assignment must be written.

Answer 13

Form of the Assignment

Question 14

Transfers all rights, title, or interested held by assignor to assignee.

Answer 14

Effect on Assignment

Question 15

The assignor is the true owner of the right.

Answer 15

Warranties of the Assignor

Question 16

The right is valid and subsisting at the time the assignment is made.

Answer 16

Warranties of the Assignor

Question 17

There are no defenses available to the debtor which have not been disclosed to the assignee.

Answer 17

Warranties of the Assignor

Question 18

Contract obligating or entitling two or more people together to performance.

Answer 18

Joint Contracts

Question 19

Two or more people individually agree to perform obligation.

Answer 19

Several Contracts

Question 20

Two or more people bound jointly and individually.

Answer 20

Joint and Several Contracts

Question 21

This type of contract arises when two or more people individually agree to perform the same obligation even though the individual agreements are contained in the same document.

Answer 21

Several

Question 22

This type of contract obligates or entitles two or more people together to performance.

Answer 22

Joint

Question 23

Even if a contract may be assigned, there may be some _________ requirements that must be met to make sure the assignment is effective.

Answer 23

Technical

Question 24

A person to whom the promisee owes obligation, which is discharged if the promisor pays. (Two words)

Answer 24

Creditor Beneficiary

Question 25

This is the transfer of duties.

Answer 25

Delegation

Question 26

A novation does not need to be in writing, nor must it be ____________.

Answer 26

Expressed

Question 27

When one assigns rights under a contract to an assignee for value, the assignor makes how many implied warranties?

Answer 27

Three

Question 28

A contract creates both rights and ____________.

Answer 28

Obligations

Question 29

This is the termination of a contract and substitution of a new one with the same terms but a new party.

Answer 29

Novation

Question 30

The party making the assignment.

Answer 30

Assignor

Question 31

This type of beneficiary is a person who unintentionally benefits from the performance of a contract.

Answer 31

Incidental

Question 32

The one to whom the right is transferred.

Answer 32

Assignee

Question 33

This type of beneficiary is a third-party beneficiary for whom performance is a gift.

Answer 33

Donee

Question 34

This means one party conveys the rights in a contract to another who is not a party to the original undertaking.

Answer 34

Assignment

Question 35

A person not party to the contract but whom parties intended to benefit. (Three words)

Answer 35

Third Party Beneficiary

Question 36

Person to whom contract right is assigned

Answer 36

Assignor

Question 37

Conveyance of rights in a contract to a person not a party

Answer 37

Assignment

Question 38

Person making an assignment

Answer 38

Assignor

Question 39

A contract involves rights but not necessarily obligations.

Answer 39

False

Question 40

If a person incidentally benefits by the performance of a contract, suit for breach or for performance will be successful.

Answer 40

False

Question 41

Novation can be implied from the parties' actions.

Answer 41

True

Question 42

An assignment means that one party conveys rights in a contract to another who is not a party to the original deal.

Answer 42

True

Question 43

Whether rights may be assigned depends upon their nature and the terms of the contract.

Answer 43

True

Question 44

Notice must be given to the other party in order to make the assignment effective between the assignor and the assignee.

Answer 44

False

Question 45

A delegating party remains fully liable under a contract.

Answer 45

True

Question 46

If Rochon and Bailey both sign a contract "I promise...", that binds them jointly and severally.

Answer 46

True

Question 47

A delegation relieves the delegating party of all liability under the contract.

Answer 47

False

Question 48

A person to whom the promissee owes an obligation or duty that will be discharged to the extent that the promisor performs the promise is called the ________ beneficiary.

Answer 48

Creditor

Question 49

A/n ________ beneficiary is one to whom the promisee owes no legal duty but to whom performance is a gift, such as the beneficiary named in a life insurance contract.

Answer 49

Donee

Question 50

The party making the assignment is the ________; the one to whom the right is transferred is the ________.

Answer 50

Assignor, assignee

Question 51

When an assignment is made by acts of the parties, it:

Answer 51

may be either written or oral.

Question 52

_______ __ ___ ______ include the right is valid and existing at the time the assignment is made.

Answer 52

Warranties of the assignor

Question 53

When two or more persons enter into a contract with someone else, the contract may be joint, several, or joint and several. What determines the type of contract?

Answer 53

the intention of the parties