BLAW 3430 Exam 4 Review 100% Correct Verified 2024 Version
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Institution
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The transfer of a contract right to a third party is known as a(n): - assignment.
A(n) __________ is a substitution for an old contract with a new one that either replaces an existing
obligation with a new obligation with a new obligation or replaces an original party with a new party. -
novatio...
BLAW 3430 Exam 4 Review | 100% Correct |
Verified | 2024 Version
The transfer of a contract right to a third party is known as a(n): - ✔✔assignment.
A(n) __________ is a substitution for an old contract with a new one that either replaces an existing
obligation with a new obligation with a new obligation or replaces an original party with a new party. -
✔✔novation
When a contract is intended to benefit a third person, such a person is a(n): - ✔✔intended beneficiary.
A(n) __________ is an intended beneficiary of a contract who receives the benefits of the contract as a
gift. - ✔✔donee beneficiary
Which of the following is true about the vesting of an incidental beneficiary's rights? - ✔✔An incidental
beneficiary was not meant to benefit from the contract, thus he acquires no rights
A(n) __________ stands exactly in the position of the __________. - ✔✔assignee; assignor
Not all classes of beneficiaries receive rights in the underlying contract. Which one does not? -
✔✔Incidental beneficiaries.
A clear and specific contractual prohibition against the assignment of rights __________ enforceable at
common law. - ✔✔Is
The party owing a debt under a contract is the: - ✔✔obligor
Which of the following is/are true concerning the requirements for the form of an assignment? - ✔✔a.
An assignment may be in any form.
b. Statutes may require certain assignments be in writing or executed in a particular form.
,c. Any words, written or spoken, that show an intention to transfer or assign will be respected.
Sometimes the promisee's primary intent is to discharge a duty to a third party. Which of the following
describes that type of contract? - ✔✔A contract where the insured names a bank with which he has a
loan as the beneficiary of a life insurance policy.
Which of the following duties would not be delegable? - ✔✔Andy has a duty to teach an accounting
class at a community college during the fall semester.
Officer Friendly has a life insurance policy on his own life that provides that in the event of his death, his
mother will receive the proceeds. Officer Friendly's mother is a(n): - ✔✔donee beneficiary
Trent wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement
to pay $15.00 per month in premiums on a term life insurance policy which names the bank as the
recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n): -
✔✔creditor beneficiary.
Randolph enters into a contract with a contractor to build a large office building in Central City. Gas-N-Go
will greatly benefit from this contract since his convenience store is adjacent to the building. Gas-N-Go in
this instance is: - ✔✔an incidental beneficiary.
Drake, a contractor, and Lonnie, a landowner, have a contract whereby Drake is to perform routine
construction services according to the blueprints that Lonnie has provided. Drake assigns the contract to
Brad, a developer. As a result of this assignment: - ✔✔Drake no longer has any rights under the contract,
but he remains responsible for the duties he agreed to perform.
In which of the following situations is there a third party incidental beneficiary who would be unable to
enforce the agreement? - ✔✔A t-shirt store hoping to sell national championship t-shirts, located across
the street from a stadium where the home team loses the national championship due to a bad call by
the referee hired by the conference.
Brandon promises Debbie to deliver an iPad to Edward if Debbie promises to pay Brandon $200. What is
Edward's status in this agreement? - ✔✔Intended Beneficiary
, Brandon promises Debbie to deliver a fully-working iPad if Debbie promises to pay Brandon $200.
Debbie then gives the iPad to Edward. Unfortunately, the iPad is defective and will not turn on for
Edward. If Edward sues Brandon for breach of contract, will he be successful? - ✔✔No, because Edward
is an incidental beneficiary.
Will owes Juan $1,000 due on July 1. Juan assigns the debt to Joshua on June 1, but neither Juan nor
Joshua informs Will. On July 1, Will pays Juan $1,000. Is Will fully discharged from his obligation? -
✔✔Yes, because he did not receive notice of Juan's assignment to Joshua.
Patty owes a legal duty to Nancy because Patty owes Nancy money from a previous obligation. Later,
Patty makes a loan contract with Lee, where Lee owes Patty $5,000. Patty then assigns her contract
rights from her agreement with Lee to Nancy in order to satisfy her duty to her. In this situation, Nancy is
best described as: - ✔✔a creditor beneficiary.
A(n) __________ is a contract by which an obligee promises to accept a stated performance in
satisfaction of the obligor's existing contractual duty. - ✔✔accord
Which type of condition is more common? - ✔✔Conditions precedent are common in contracts.
A(n) __________ is a substituted contract that involved an agreement among three parties to substitute
a new promise for the existing promise or to replace the existing promisor with a new one. -
✔✔novation
Even though all creditors have not been paid in full, a discharge under the __________ eliminates
ordinary contract claims against the debtor. - ✔✔bankruptcy law
__________ is performance that, though incomplete, does not defeat the purpose of the contract -
✔✔Substantial performance
A __________ is an event that terminates an existing duty. - ✔✔condition subsequent
In most contracts, discharge takes place by: - ✔✔performance
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