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Exam 19: Third-Party Rights to Contracts

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Question 41

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What is the most likely outcome when an assignment is made in violation of an antiassignment clause?

A) The court will refer to the statute of frauds to determine the effectiveness of the assignment.
B) The court will always prohibit assignment.
C) The court will never prohibit assignment.
D) The court will allow assignment always unless it is against public policy.
E) The court will treat the assignment as a breach of contract.

F) A) and D)
G) B) and C)

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Question 42

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Which of the following is true regarding assignment of rights in China?

A) Free assignment of rights is permitted only when a contract with a private party is involved unless the contract is one considered "for the good of the people."
B) Free assignment of rights is permitted only when a contract with a state authority is involved.
C) Assignment of rights is illegal.
D) When a private party is involved,the assignor must first get the obligor's approval before an assignment is made.
E) Free assignment of rights is permitted.

F) D) and E)
G) C) and D)

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Question 43

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Assignments require special wording or forms to be valid.

The Case Opener involved a lawsuit by fans seeking a refund based on the fact that the Tyson and Holyfield fight was stopped in the third round because Tyson bit off a piece of Holyfield's ear.What was the ruling of the court?

Jimmy and Penny enter into a contract.Jimmy transfers his rights under the contract to Luis.Luis is an:

Assignment of a contract that is personal in nature is generally permitted.

List and discuss two reasons why notice of assignment should be given.

When does an assignment become effective?

Which of the following is an exception to the general rule that rights to a contract cannot be assigned when a contract is personal in nature?

A creditor beneficiary is the third-party beneficiary who is in the strongest legal position to enforce a contract.

A[n] ________ beneficiary is one who unintentionally gains a benefit from a contract between other parties.

In determining whether a party is an incidental or intended beneficiary,one factor courts consider is whether the contract directly states that the third party is the benefiting party.

[Painted House] Jamal had a contract to paint Stephanie's house for $800.His contractual obligations included cleaning up any debris.The contract between Jamal and Stephanie did not in any way address assignment.Jamal,who was very busy,assigned the contract to Greg who was interested in making some extra money and had experience painting.Jamal specified that the contract included the duty to paint the house and the right to receive the money.Jamal did not tell Stephanie about the assignment because he did not want any trouble.Greg also did not mention the assignment to Stephanie.In fact,Greg never met Stephanie because he painted her house while she was at work.After Greg did a good job painting the house,Stephanie sent a check to Jamal for $800.Jamal needed the money to pay some bills,so he spent it.He thought he would have money coming in with which to pay Greg,but that did not happen.Greg asked Stephanie for $800 when it was not forthcoming from Jamal.Stephanie refused.Greg said that he was going to sue her.Stephanie called Jamal and told him that he had no right to assign the contract.In addition,there was another problem involving the disposal of debris.Although Greg was a good,competent painter,he forgot and left some old paint cans at Stephanie's house.Stephanie demanded that Jamal come and properly dispose of the paint cans because they could not simply be put in the trash.Jamal refused and told her that she would have to get Greg to dispose of the paint cans because that was his responsibility.Stephanie called Greg who told her that he was busy and that clearing out the paint cans was Jamal's responsibility. -What would be the likely result of a lawsuit brought by Greg against Stephanie to recover the $800?

What type of third-party beneficiary is Bobby?

Russia duplicated the freedom of assignments found in the American Uniform Commercial Code,when modifying the Russian Civil Code.

Theresa agrees to mow Huan's yard for $300 for the summer.Huan wishes to assign the contract to his grandmother.Theresa objects because Huan's yard is very small while his grandmother's yard is over an acre.Which of the following is the correct legal outcome for the dispute between Theresa and Huan?

What is the term for the party to a contract who transfers his or her rights to a contract to a third party?

In Australia a third party can sue for breach of contract.

Carrie and Clayton enter into a contract.Carrie transfers her rights under the contract to Tamir.What is this transfer of rights called?

Which of the following is true regarding Stephanie's statement to Jamal that he had no right to assign the contract?