ch.19 business law – Flashcards
Unlock all answers in this set
Unlock answersquestion
Privity of contract
answer
Parties not in ______ usually do not have rights to a contract.
question
Obligor
answer
Which of the following is a contractual party who agrees to do something for the other party?
question
Obligee
answer
Which of the following is a contractual party who agrees to receive something from the other party?
question
Assignment
answer
Which of the following occurs when a party to a contract transfers his or her rights to a contract to a third party?
question
Assignor
answer
What is the term for the party to a contract who transfers his or her rights to a contract to a third party?
question
Assignee
answer
What is the term for the third party who receives an assignment of contract rights?
question
Assignees are offered more protection than assignors.
answer
Which of the following is false regarding the rights of an assignee and assignor?
question
No form is required.
answer
Which of the following, if any, is needed in order for an assignment to be valid?
question
In some cases, assignments may be made orally.
answer
Which of the following is true regarding oral assignments?
question
When the only part of a contract left to be fulfilled is the payment.
answer
Which of the following is an exception to the general rule that rights to a contract cannot be assigned when a contract is personal in nature?
question
Sally will win because Paul's attempted assignment would increase the duties to which she agreed.
answer
Sally agrees to mow Paul's yard for $300 for the summer. Paul wishes to assign the contract to his grandmother. Sally objects because Paul's yard is very small while his grandmother's yard is over an acre. Which of the following is the correct legal outcome for the dispute between Sally and Paul?
question
Antiassignment
answer
When parties include a[n] ______ clause in their contract, the parties are attempting to limit their ability to assign their rights under the contract.
question
Assignments made by operation of law, assignments for the right to receive monetary payments, and assignments for the right to receive damages for a breach of contract to sell goods or services may be assigned even in the presence of an antiassignment clause.
answer
Which of the following is true regarding whether a contract may be assigned even in the presence of an antiassignment clause?
question
The case was remanded for trial on the issue of whether adequate police protection was provided in view of the fact that the plaintiff was an intended third-party beneficiary to the contract between the school board and the athletic association.
answer
Which of the following was the result in the case in the text Wesley Locke v. Ozark City Board of Education, in which an umpire was injured by an angry parent and sued claiming that he was an intended third-party beneficiary under a contract the defending board of education had with the Alabama High School Athletic Association requiring police protection which was not provided?
question
The first-assignment-in-time rule
answer
Which of the following states that in the case of multiple assignments of the same right, the first party granted the assignment is the party correctly entitled to the contractual right?
question
The English rule
answer
Which of the following states that in the case of multiple assignments of the same right, the first assignee to give notice of assignment to the obligor is the party with rights to the contract?
question
Delegation
answer
A[n] ______ occurs when a party to a contract transfers his or her duty to perform to a third party who is not part of the original contract.
question
Delegator
answer
A party to a contract who transfers his or her duty to perform to a third party who is not part of the original contract is called a[n] _____.
question
Delegatee
answer
A third party, who is not part of an original contract, but to whom duty to perform contained in the original contract is transferred is called a[n] _____.
question
Bill continues to be bound to Judy to see that her car gets washed.
answer
Bill contracts with Judy to wash her car and then delegates the duty to Paul. Paul fails to wash the car. Which of the following is true regarding Bill's duty to Judy, if any?
question
Ally cannot enforce the assignment because it was not in writing.
answer
Paul and Mary have an agreement that Mary will buy Paul's house. Later Mary orally assigns the right to buy the house to Ally, one of Paul's former girlfriends. When Ally shows up with the money, Paul says "No way! You ditched me to date Rick. I'm not ever letting you get anything from me!" Which of the following is true in regard to the dispute between Paul and Ally?
question
When a private party is involved, the assignor must first get the obligor's approval before an assignment is made.
answer
Which of the following is true regarding assignment of rights in China?
question
Third-party beneficiary
answer
A[n] ______ is created when two parties enter into a contract with the intended end purpose of benefiting a third party.
question
Intended
answer
A[n] ______ beneficiary is a third party to a contract who is intended to be benefited directly from the contract made by the contracting parties.
question
Promisor
answer
The ______ in a third-party beneficiary contract is the party to the contract who made the promise that benefits the third party.
question
Promisee
answer
The ______ in a third-party beneficiary contract is the party to the contract who owes something to the promisor in exchange for the promise made to the third-party beneficiary.
question
Donee and creditor, but not incidental
answer
Which of the following is a type of intended beneficiary?
question
Creditor
answer
A[n] ______ beneficiary is a third party who benefits from a contract in which the promisor agrees to pay the promisee's debt.
question
Donee
answer
A[n] ______ beneficiary is a third party who benefits from a contract in which the promisor agrees to give a gift to the third party.
question
Vesting
answer
Which of the following references the maturing of rights such that a party can legally act on the rights?
question
Valid
answer
Creditor beneficiaries can enforce their rights under a contract whenever the contract is _____.
question
Familial
answer
The state of New York does not grant a donee beneficiary the right to enforce a contract unless the promisee is connected to the donee through a ______ relationship.
question
Promisor
answer
When a donee beneficiary may enforce rights under a contract, it may be done so only against the ____.
question
Incidental
answer
A[n] ______ beneficiary is one who unintentionally gains a benefit from a contract between other parties.
question
An incidental beneficiary cannot sue to enforce a contract which provided incidental benefits.
answer
Which of the following is true regarding the rights of an incidental beneficiary to a contract to sue to recover incidental rights?
question
The courts ask if a reasonable person in the position of the party in question would believe the contracting parties intended to benefit the party in question.
answer
Which of the following is a consideration of courts in determining whether a person is an incidental or intended beneficiary?
question
Whether performance of the contract is done directly to the third party, the third party's ability to control the specifics of performance of the contract, and whether the contract directly states that the third party is the benefiting party.
answer
Which of the following is true regarding factors considered by a court in determining whether a party is an intended or incidental beneficiary?
question
The fans were not allowed to recover because they were incidental beneficiaries.
answer
What was the ruling of the court in the Case Opener involving a lawsuit by fans seeking a refund based upon the Tyson and Holyfield fight being stopped in the third round because Tyson bit off a piece of Holyfield's ear?
question
An assignee may decline an assignment if he has not agreed to it and declines in a timely fashion after learning of it.
answer
Which of the following is true regarding an assignee's acceptance of assigned rights?
