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Unformatted text preview: chapter 12 1. Third parties do not have rights under contracts to which they are not parties. A) True B) False Feedback: Intended beneficiaries have legal rights in contracts under which they benefit. An intended beneficiary is a party whom the contracting parties intended to benefit. Third parties who benefit from a contract only incidentally (incidental beneficiaries) normally do not have rights under the contract. Points Earned: 1.0/1.0 Correct Answer(s): False 2. The party who makes an assignment is the assignee. A) True B) False Feedback: In an assignment, the party assigning the rights is the assignor . The obligor is the party who was originally obligated to perform for the assignor. The party who receives the rights on an assignment is the assignee (who may also be the obligee ). In a delegation, the party delegating the duties is the delegator (also the obligator ) and the party assuming the duties is the delegatee . Points Earned: 1.0/1.0 Correct Answer(s): False 3. Rights under a personal service contract normally can be assigned. A) True B) False Feedback: A right under a personal service contract cannot normally be assigned. Also, a right cannot ordinarily be assigned if a statute expressly prohibits its assignment, a contract stipulates that it cannot be assigned, or assignment would materially increase or alter the risk of the obligor. Points Earned: 1.0/1.0 Correct Answer(s): False 4. With notice of an assignment, an assignee can compel an obligor to perform. A) True B) False Points Earned: 1.0/1.0 Correct Answer(s): True 5. If a delegatee fails to perform, the delegator must do so. A) True B) False Points Earned: 1.0/1.0 Correct Answer(s): True 6. A promise to perform subject to obtaining financing is a condition precedent. A) True B) False Points Earned: 1.0/1.0 Correct Answer(s): True 7. Complete performance occurs when a contracts conditions fully occur. A) True B) False Points Earned: 1.0/1.0 Correct Answer(s): True 8. A...
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This note was uploaded on 12/01/2010 for the course BUSINESS L 100 taught by Professor Random during the Fall '10 term at Oklahoma City Community College.

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