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Exam 15: Third Party Rights

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Question 21

Multiple Choice

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Apps LLC enters into a contract with Bart, the chief executive officer of Corporate Sales Inc., to create an app for the firm. To fulfill the contract, Apps hires Dave as a student intern. With respect to the contract, Dave is

A) an intended beneficiary.
B) an incidental beneficiary.
C) a delegatee.
D) an assignee.

E) None of the above
F) A) and B)

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Question 22

Multiple Choice

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Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping 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 personal in nature.
B) only duties that are impersonal in nature.
C) no duties under the contract.
D) all duties under the contract.

E) A) and B)
F) A) and C)

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Question 23

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Fact Pattern 15-1 Restore Construction Company enters into a contract with Sam to remodel Tess's Home Store, using products from United Building Supplies. Refer to Fact Pattern 15-1. United will realize a profit from the sale of products to Restore to remodel Tess's store. United is

As a general rule, any duty can be delegated.

Hilda enters into a contract with Indemnity Insurance Company that designates Hilda's daughter Jackie as the beneficiary. Jackie's rights under the contract will vest

In an assignment, the obligor is the person who to whom a duty, or obligation, is owed.

As a general rule, all rights can be assigned.

In an assignment, the obligee is the person who is obligated to perform the duty.

Kent enters into a contract with Life Insurance Company for a policy that designates Mia as the beneficiary. Kent reserves the right to change the designated beneficiary. Mia's rights under the policy are

Expressly designating a third party as a beneficiary in a contract indicates whether the beneficiary is intended or incidental.

Retail Outlets LLC contracts with Smooth Paving Inc. to grade and pave a parking lot. The contract provides that it cannot be assigned without Retail's consent. Later, Smooth assigns the contract to Tough Road Company without obtaining Retail's consent. Retail could most successfully argue that the contract cannot be assigned because

Once the obligor receives proper notice, only performance to the assignee can discharge the obligor's obligation.

Rhea takes out a life insurance policy with Secure Insurance Corporation that names her spouse Tim as the beneficiary. This is

Neither intended nor incidental beneficiaries acquire legal rights in a contract.

Carol takes out an insurance policy on her truck, a Dodge pick-up. Carol can assign her policy to Elmer, who owns a Ford F-150,

Molly is a third party beneficiary under a contract between Ned and Otis. Ned and Otis can modify or rescind their contract without Molly's consent

Ira owes Jessie $1,000. Kerry owes Ira $1,000. Ira unconditionally assigns his rights to Jessie. Ira's right to the $1,000 is then

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. The delegator is

The assignment of the same contract right to two different parties requires parallel and equal rights and obligations.

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard. When Kris's schedule conflicts, she contacts Lena, to whom Kris "assigns all rights under the contract." Kris is