
Chapter 18 Third Party Rights Quiz
1. Billy Bob has purchased the right to hunt on Willy Bob's land. Billy Bob makes an oral agreement to assign his rights to hunt on the land this fall to his mother, Millie Bob. Is this assignment valid?
a. yes, because all assignments
may be oral
b. yes, because this assignment will take place this year
c. yes, because this assignment does not involve wages or worker's
compensation
d. no
2. Amanda is Billy's Landlord, and collects $750 per month rent
from him. She feels sorry for Matt, a struggling medical student,
and decides to assign her rights to receive Billy's rent to Matt.
No one notifies Billy of the assignment. Is this a valid assignment?
a. no, because Matt did
not give consideration
b. no, because it lacks a legal purpose
c. no, because Billy was not notified
d. yes
3. Fran goes to buy a used car from "Honest Pete." Pete
pulls a gun on her in his office and forces her to sign a contract
in which she agrees to buy a 1976 Pinto for $5,000. (The car's
fair market value is $200). Later, Pete assigns his rights to
receive the $5,000 to his friend Jake. Which term accurately describes
Fran?
a. obligor
b. obligee
c. assignor
d. assignee
4. Al, Bill, and Carl live next door to each other. Al decides
to leave town for the month of March on vacation. He makes a contract
with Bill, in which he will pay $100 and Bill will mow his yard
once a week while he is gone. After Al leaves, Bill mows the lawn
once, then becomes more interested in the NCAA basketball tournament
on TV. The shaggy lawn annoys Carl, and when Al returns he refuses
to pay Bill any money. Who has established privity of contract?
a. Al only
b. Bill only
c. Al and Bill
d. Al, Bill, and Carl
5. Al, Bill, and Carl live next door to each other. Al decides
to leave town for the month of March on vacation. He makes a contract
with Bill, in which he will pay $100 and Bill will mow his yard
once a week while he is gone. After Al leaves, Bill mows the lawn
once, then becomes more interested in the NCAA basketball tournament
on TV. The shaggy lawn annoys Carl, and when Al returns he refuses
to pay Bill any money. Under general contract law, who has standing
to sue under this contract?
a. Al only
b. Bill only
c. Al and Bill
d. Al, Bill, and Carl
6. Fran goes to buy a used car from "Honest Pete." Pete
pulls a gun on her in his office and forces her to sign a contract
in which she agrees to buy a 1976 Pinto for $5,000. (The car's
fair market value is $200). Later, Pete assigns his rights to
receive the $5,000 to his friend Jake. Jake goes to court to try
to collect the $5,000 from Fran. She raises the defense of duress.
How much money will Jake be able to recover from Fran?
a. $5,000
b. $4,500
c. $500
d. $0
7. Amanda is Billy's landlord. Billy and Amanda's contract says
"Amanda shall not assign her rights to Billy's payments."
Amanda assigns her rights to the payments to Matt. Is the assignment
valid?
a. no, because Matt did
not give consideration
b. no, because the contract expressly prohibits assignments
c. no, because Billy was not notified
d. yes
8. Out of the goodness of her heart, Amanda assigns rights to
receive monthly rent payments to Matt. If Amanda later changes
her mind, and decides to revoke the assignment from Matt, can
she do so?
a. yes, because Matt did
not give consideration
b. yes, because assignments may always be revoked
c. no, because assignments may never be revoked
d. no, because the assignment was gratuitous
9. Amanda is Billy's landlord. She assigns the right to receive
Billy's monthly rent checks to Matt without telling Billy. Assume
Billy pays his next rent check to Amanda. If Matt tries to sue
Billy for the March rent payment, will he win?
a. yes, because as an obligee
he has a right to a payment from Billy
b. yes, because as the assignee he has a right to the payment
from Billy
c. no, because an obligor may always continue to pay the original
obligee
d. no, because Billy was not notified of the assignment
10. Jack and Jill have a contract whereby Jill will deliver water
to Jack. The contract expressly prohibits assignments. Can Jack
assign his rights under the contract?
a. yes, because assignments
are always valid
b. yes, because the assignment is ordinary labor
c. no, because the contract expressly prohibits assignments
d. no, because Jack is the obligee
11. Gary works at National Real Estate Company. His contract contains
a covenant not to compete. National is bought by American Real
Estate Company, and Gary has no desire to work for his new bosses.
He quits, and starts a competing business. Can American enforce
his no-compete agreement?
a. no, because his contract
deals with real estate
b. no, because his contract is a negotiable instrument
c. no, because his contract was based on trust and confidence
in National
d. yes
12. Which of the following is most likely to be the subject matter
of a valid assignment?
a. a contract to fix a car
b. a contract to tutor a child
c. a contract to receive rent payments
d. a contract to receive another's worker's compensation payments
13. If Craig is hired to tutor Jerry, may Jerry assign his right
to be tutored to his friend Lenny?
a. yes
b. no, because this materially alters Craig's risk
c. no, because it is a personal services contract
d. no, because such an assignment is prohibited by statute
14. Mary hires Tom to mow her lawn. Tom delegates his duty to
cut the grass to his little brother, Scott. Assume Scott does
show up to mow the lawn, and Mary wants Tom to come do it himself.
Can she object to the delegation?
a. yes, because she was
not given notice
b. yes, because an obligee may always object to a delegation
c. no, because all delegations are valid
d. no, because this delegation is for routine and nonpersonal
labor
15. Mary hires Tom to mow her lawn. Tom delegates his duty to
cut the grass to his little brother, Scott. Scott is too lazy
to mow the grass and never shows up. Who can Mary sue?
a. Tom only
b. Scott only
c. both Tom and Scott
d. neither Tom nor Scott
16. Mona Lisa hired Leonardo to paint her portrait and then deliver
the painting to her mother in Rome. Leonardo delegated both of
these duties to his friend Pablo. Which of the delegations is
(are) valid?
a. the obligation to paint
the portrait only
b. the obligation to deliver only
c. both A and B
d. none of the above
17. If Jen says to Laurie, "I assign all my rights in my
contract with Bob to you," what has occurred?
a. an assignment
b. a delegation
c. both A and B
d. none of the above
18. Tony owes his roommate Mike $10. One night, Mike orders a
pizza. When the delivery man arrives, Mike says, "Tony, if
you pay for this pizza, we'll call the debt even." Tony agrees.
In this arrangement, who is the promisor?
a. Tony
b. Mike
c. the delivery man
d. none of the above
19. Tony owes his roommate Mike $10. One night, Mike orders a
pizza. When the delivery man arrives, Mike says, "Tony, if
you pay for this pizza, we'll call the debt even." Tony agrees,
and pays the delivery man. In this arrangement, how can the delivery
man be characterized?
a. a third-party beneficiary
b. a creditor beneficiary
c. a donee beneficiary
d. both A and B
20. Murray has a $100,000 life insurance policy. He names his
daughter Paula as the beneficiary. One day, a Russian satellite
enters the atmosphere and plunges towards Earth at 2,000 miles
per hour. It crashes through Murray's roof and squashes him. Murray's
life insurance company refuses to pay Paula the $100,000. Can
she sue them to recover the money?
a. yes, because she is a
third-party beneficiary
b. yes, because she is an intended beneficiary
c. no, because she is an incidental beneficiary
d. no, because she has no privity of contract with the insurer
21. Agnes wants to give $100,000 in stock to her son, Rufus. She
hires Al Attorney to carry out this transaction, but the attorney
negligently fails to make the transfer. Before she can hire another
attorney, a piece of a Russian satellite crashes through her roof,
squashing her. Assume all the parties live in Scotland. Can Rufus
sue Al Attorney for failing to properly carry out the original
transaction?
a. yes, because he is a
third-party beneficiary
b. yes, because he is an intended beneficiary
c. no, because he is an incidental beneficiary
d. no, because he is not in privity of contract with Al
22. Agnes wants to give $100,000 in stock to her son, Rufus. She
hires Al Attorney to carry out this transaction, but the attorney
negligently fails to make the transfer. Before she can hire another
attorney, a piece of a Russian satellite crashes through her roof,
squashing her. Can Rufus sue Al Attorney for failing to properly
carry out the original transaction?
a. yes, because he is a
third-party beneficiary
b. yes, because he is an intended beneficiary
c. no, because he is an incidental beneficiary
d. no, because he is not in privity of contract with Al
23. Rudolph hires Yukon Cornelieus to shovel snow from Santa's
driveway. Yukon is too busy hunting Bumbles to do the job and
never shows up. What circumstance might prevent Santa from suing
to enforce this contract?
a. Yukon and Rudolph's agreement
was oral.
b. Yukon was not in the business of shoveling snow.
c. Santa was not aware of the contract until after it was to be
completed.
d. Santa had already plowed the driveway himself.
24. Kroger signs a contract to build a store in Everville, then
breaches the contract and backs away from the deal. Which of the
following third parties may sue to enforce the contract?
a. a local hardware store
that hoped to sell building materials to the construction crew
b. a local deli who hoped to sell food to the construction crew
c. a resident who wanted to shop at a new grocery store
d. none of the above
25. Kyle leases office space from Tex. Their contract requires
Kyle to buy liability insurance, which he fails to do. Boris later
injured himself in Kyle's office, and sues Tex. Will he win?
a. yes, because he is a
creditor beneficiary of the insurance clause of Tex's contract
with Kyle
b. yes, because he is a donee beneficiary of the clause
c. no, because he is not an intended beneficiary of the clause
d. no, because he has no privity of contract with Tex