BUSLaw Chp15: Third-Party Rights and Discharge – Flashcards
Unlock all answers in this set
Unlock answersquestion
The state of two specified parties being in a contract is called
answer
Privity of contract
question
A party who owes a duty of performance under a contract is called the
answer
Obligator
question
An oblige who transfers the right to receive performance is called a(n)
answer
assignor
question
____ is a clause that prohibits the assignment of rights under the ocntract
answer
Anti-assignment clause
question
the ___, also known as New York rule, provides that the first assignment to time prevails, regardless of notice
answer
American rule
question
The ___ rule provides that the first assignee to give notice to the obligor.
answer
English
question
An obligor who transfer his or her duty is called
answer
delegator
question
A situation where there is a valid delegation of duties but the delegatee has not assumed the duties under a contract, the delegation is called
answer
declaration of duties
question
A third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the promisor is called the
answer
Intended third party beneficiary
question
A Contract entered into with the intent to confer a benefit or gift on an intended third party is called
answer
Donee beneficiary contract
question
A party who is unintentionally benefited by other people's contracts is called an
answer
Incidental beneficiary
question
A(n) ___ is an unconditional promise to perform
answer
Covenant
question
____ is an objective test that applies to commercial contracts and contracts involving mechanical fitness
answer
Reasonable person test
question
A(n) ___ agreement substitutes a third party for one of the original contracting parties.
answer
novation
question
___ is a clause in a contract in which the parties specify certain events that will excuse nonperformance
answer
Force majuere
question
An obligee who transfers the right to receive performance is called the A. subsequent assignor B. assignor C. obligor D. assignee
answer
B. assignor
question
A legal right that arises out of a breach of contract is __ A. considered a future right B. not assignable C. subject to approval clause D. assignable
answer
D. Assignable
question
Who should provide a notice of assignment to the obligor? A. facilitator B. assignor C. obligee D. assignee
answer
D. assignee
question
Which of the following is true in the event that an assignee does not provide a notice of assignment to the obligor? A. The assignee cannot sue the obligor to recover payment B. The assignee cannot sue the assignor for damages C. The obligor's only recourse is to sue the assignee for damages D. The assignee's only course of action is to sue the obligee for damages
answer
A. The assignee cannot sue the obligor to recover payment
question
A(n)___ is used if the obligor does not want to deal with or render performance to an unknown third party A. novation agreement B. approval clause C. anti-assignment clause D. anti-delegation clasue
answer
C. anti-assignment clause
question
Approval clauses require that the ___ approve any assignment of a contract A. obligor B. obligee C. assignor D. assignee
answer
A. Obligor
question
Which of the following is an illustration of the possession of tangible token rule? A. The right of collecting $10,000 is recorded in the assignee's savings account passbook B. An obligee who is owed $10,000 assigns the right of collection $5,000 each to two assignees. C. The assignee can re-assign the right only to a sub assignee selected by the obligee. D. An obligee cannot assign a right to collection of more than once
answer
A. The right of collecting $10,000 is recorded in the assignee's savings account
question
A(n) ___ occurs when there is a transfer of both rights and duties under a contract A. discharge B. declaration of duties C. assumption of duties D. Assignment and delegation
answer
D. Assignment and delegation
question
A(n) ____ is an original creditor who becomes a beneficiary under the debtor's new contract with another party A. creditor beneficiary B. donee beneficiary C. incidental creditor D. subsequent assignee
answer
A. creditor beneficiary
question
Which of the following is true of incidental beneficiaries? A. A creditor beneficiary is an unintended beneficiary B. An incidental beneficiary cannot sue under other people's contracts. C. An intended third party beneficiary cannot enforce the contract against the promisor D. Incidental beneficiary is a third party who is benefited intentionally.
answer
B. An incidental beneficiary cannot sue under other people's contracts
question
Which of the following phrases describes the term covenant? A. successive assignments of a right B. a breach of contract C. mutual rescission of a contract D. an unconditional promise to perform
answer
D. an unconditional promise to preform
question
____refers to a condition that requires the occurrence of an event before a party is obligated to perform a duty under a contract. A. Concurrent condition B. Condition subsequent C. Condition precedent D. Implied condition
answer
C. Condition precedent
question
_____ refers to a condition whose occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing contractual duty to perform. A. condition subsequent B. Condition precedent C. Concurrent condition D. Implied condition
answer
A. Condition subsequent
question
In which of the following conditions is a party's absolute duty to perform conditioned on the other party's absolute duty to perform? A. condition precedent B. concurrent condition C. condition subsequent D. implied condition
answer
B. Concurrent condititon
question
The injured party loses the right to sue if the lawsuit is brought after the ___ expires. A. privity of contract B. notice of assignment C. statute of limitations D. future right
answer
C. statute of limitation
