Exam 3 Homework Bank.docx - Week 10 Assignment 1 Privity of...

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Week 10 Assignment 1. Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties. T 2. A transfer of contract rights to a third party is an assignment. T 3. An assignee’s rights are subject to the defenses that the obligor has against the assignor. T 4. The person to whom rights in a contract are assigned is the assignor. F 5. An assignee has a right to demand performance from the obligor. T 6. In a bilateral contract, a party who makes a promise that benefits a third party is a promisor. T 7. In an assignment, the party assigning the rights to a third party is the assignee . F 8. A right cannot be assigned if the assignment will significantly alter the risks or duties of the obligor. T 9. Alienation is a transfer of land ownership. T 10. All rights can be assigned with no exceptions. F 11. An insurance policy is an example of a right that can be assigned. F 12. An assignment of rights in real estate often cannot be prohibited. T 13. In most cases, a contract that prohibits its assignment cannot be assigned. T 14. Contract duties are not assigned—they are delegated. T 15. Giving notice is legally necessary to establish the validity of an assignment. F 16. A special form is required to create a delegation of duties. F 17. A delegation relieves the party making it of the obligation to perform. F 18. No contract can prohibit delegation of the duties of the contract. F 19. The rights of a third party beneficiary under a contract do not vest if the third party materially changes his or her position in justifiable reliance on the promise. T 20. An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional. T 21. An intended third party beneficiary cannot enforce the contract against the original parties once the rights of the third party have vested. F 22. If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary. F 23. A third party’s right to control the details of performance of a contract indicates that the third party is an intended beneficiary. T 24. A creditor beneficiary is any third person who receives a benefit from a contract even though that person’s benefit is not the reason the contract was made. F

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