Biz Law Ch16 Part I: Question Preview (ID: 24997)


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A transfer of contract rights to a third party is an assignment.
a) true b) false c) d)
When rights under a contract are assigned unconditionally, the rights of the assignor are extinguished.
a) true b) false c) d)
The person to whom rights in a contract are assigned is the assignor.
a) false b) true c) d)
Contract duties cannot be assigned but they can be delegated.
a) true b) false c) d)
When the parties to a contract agree that its performance should directly benefit a third person, the third person is an intended third party beneficiary.
a) true b) false c) d)
An intended third party beneficiary can sue a promisor directly for breach of contract.
a) true b) false c) d)
A donee beneficiary cannot sue a promisor directly for breach of contract.
a) false b) true c) d)
Any beneficiary who is not deemed an intended beneficiary is considered incidental.
a) true b) false c) d)
Dwayne and Ewell enter into a contract for the design of an addition to Dwayne’s house for which he agrees to pay Ewell. Ewell transfers his right to payment under the contract to Flex Construction Company. Flex is
a) an assignee b) a delegatee c) an obligee d) an alien
Loren and Kendra enter into a contract for the distribution of Loren’s produce to local restaurants for which he agrees to pay Kendra. Kendra transfers her right to payment under the contract to County Bank. This transfer is
a) an assignment b) a delegation c) an alienation d) prohibited
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