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TJ_Comp 20_TB_Ch18

TJ_Comp 20_TB_Ch18 - Chapter 18THIRD PERSONS AND CONTRACTS...

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Chapter 18—THIRD PERSONS AND CONTRACTS TRUE/FALSE 1. Generally, only the parties to a contract may sue on it. ANS: T MSC: AACSB Analytic 2. Persons who are not a party to a contract never can bring a suit based on that contract. ANS: T MSC: AACSB Analytic 3. When a contract is intended to benefit a third person, such a person is referred to as a delegator. ANS: F MSC: AACSB Analytic 4. An incidental beneficiary is the same thing as a third-party beneficiary. ANS: F MSC: AACSB Analytic 5. It is necessary that a third-party beneficiary be identified by name. ANS: F MSC: AACSB Analytic 6. The rights of a third-party beneficiary are not destroyed if a contract is discharged. ANS: F MSC: AACSB Analytic 7. The rights of a third-party beneficiary always can be destroyed without that beneficiary's consent. ANS: F MSC: AACSB Analytic 8. The beneficiary of a life insurance policy is not subject to any policy restrictions that had been agreed to between the insured and the insurance company. ANS: F MSC: AACSB Analytic 9. When a municipality contracts with a contractor to pave a street, homeowners on that block are third- party beneficiaries of the contract. ANS: F MSC: AACSB Analytic 10. An assignment is a transfer of rights, and a delegation is a transfer of duties. ANS: T MSC: AACSB Analytic 11. An assignee of a contract can bring suit on the contract only in the name of the assignor. ANS: F MSC: AACSB Analytic 12. An obligor cannot object to the fact that the obligee assigned the obligation without receiving consid- eration for the assignment.
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ANS: T MSC: AACSB Analytic 13. An assignment requires consideration. ANS: F MSC: AACSB Analytic 14. An authorization to an obligor to pay a third person is an assignment to such a third person. ANS: T MSC: AACSB Analytic 15. An assignment is valid although no notice thereof is given to the other contracting party. ANS: T MSC: AACSB Analytic 16. A person who expects to be entitled to money in the future cannot assign that money for use right now. ANS: F MSC: AACSB Analytic 17. A contract may prohibit the assignment of any rights arising thereunder. ANS: T MSC: AACSB Analytic 18. When work is guaranteed by one who repairs a building, the owner, on selling the building, may assign the guarantee to the buyer. ANS: T MSC: AACSB Analytic 19. In general, one may assign rights if that does not cause the obligor's duties to increase or change mater- ially. ANS: T MSC: AACSB Analytic 20. An employer can assign to another employer the right to have an employee work. ANS: F MSC: AACSB Analytic 21. A person who has a right to buy on credit can transfer that right to a close relative. ANS: F MSC: AACSB Analytic 22. An assignee's rights are the same as those that had been possessed by the assignor. ANS: T MSC: AACSB Analytic 23. A subcontractor is a party to whom a general contractor delegates duties.
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