Question 1

Pursuant to the equitable theory of post hoc ergo propter hoc,an intended beneficiary can enforce her rights to a contract before the rights vest.

Accepted Answer

A) True 
 B)False

Question 2

When a court deems a contract integrated,parol evidence is generally inadmissible.

Accepted Answer

A) True 
 B)False

Question 3

An intended beneficiary is a third party to a contract whom the contracting parties intended to benefit directly from their contract.

Accepted Answer

A) True 
 B)False

Question 4

The ________ rule is a common law rule that addresses the admissibility of oral evidence as it relates to written contracts.

Accepted Answer

A)  admission against interest
B)  statute of frauds
C)  parol evidence
D)  admission under oath
E)  admission under oath or affirmationF) C) and D)
G) C) and E)

Question 5

Which of the following is a consideration of courts in determining whether a person is an incidental beneficiary or merely an intended beneficiary?

Accepted Answer

A)  The courts ask if a reasonable person in the position of the party in question would believe the contracting parties intended to benefit the party in question.
B)  The courts ask if it is substantially certain that the contracting parties intended to benefit the party in question.
C)  The courts ask if it can be proven beyond a reasonable doubt that the contracting parties intended to benefit the party in question.
D)  The courts ask if the party in question paid something for the rights.
E)  The courts ask if the party in question paid at least $500 for the rights.F) C) and E)
G) A) and E)

Question 6

In determining whether a third party is an intended beneficiary,courts ask whether the contracting parties intended the third party to be the ________ beneficiary of the contract.

Accepted Answer

A)  incidental
B)  direct,primary,or express
C)  direct,primary,or incidental
D)  direct or primary,but not express
E)  primary or express,but not directF) B) and E)
G) A) and B)

Question 7

List the types of contractual rights that cannot be assigned.

Accepted Answer

Contractual rights that cannot be assign...

Question 8

What is the term for the third party who receives an assignment of contract rights?

Accepted Answer

A)  Principal
B)  Incidental beneficiary
C)  Delegatee
D)  Assignor
E)  AssigneeF) All of the above
G) C) and E)

Question 9

The statute of frauds is intended to prevent unreliable ________ evidence from interfering with a contractual relationship.

Accepted Answer

A)  hearsay
B)  oral
C)  documentary
D)  relevant
E)  writtenF) A) and C)
G) A) and E)

Question 10

The Uniform Commercial Code requires assignments to be in writing when the amount being assigned is less than $500.

Accepted Answer

A) True 
 B)False

Question 11

Third-Party Woes.Trudy owed Sam $40 for a book she purchased from him.Trudy mowed Betty's yard for $40 and agreed with Betty that Betty would pay Sam for the book.Sam is not initially aware of the agreement.Betty pays no one.Trudy also mowed Bob's yard for $40 in return for Bob's agreement to give the payment to Sally representing Trudy's birthday present to Sally.Bob later refuses to do so saying that promises to give gifts are not enforceable.He then moves out of town.Trudy tells both Sam and Sally that she is broke,that Sam needs to get his $40 for the book from Betty,and that Sally is owed $40 from Bob for her birthday present.Which of the following is the likely result if Sam sues Betty for the $40 that Trudy owes him for the book?

Accepted Answer

A)  Sam will lose because the attempted delegation was against public policy.
B)  Sam will lose because his only right of action is against Trudy.
C)  Sam will lose because he was not aware of the assignment before the duties were completed.
D)  Sam will win,but only if he can prove that Trudy has insufficient funds with which to pay him.
E)  Sam will win.F) B) and E)
G) C) and E)

Question 12

A(n) ________ is created when two parties enter into a contract with the intended purpose of benefiting a third party.

Accepted Answer

A)  third-party beneficiary contract
B)  accord and satisfaction
C)  novation
D)  assignment
E)  delegationF) C) and D)
G) A) and C)

Question 13

Which of the following is determinative regarding the effectiveness of an anti-assignment clause?

Accepted Answer

A)  Common law in the jurisdiction where the anti-assignment clause was executed
B)  The wording of the anti-assignment clause
C)  Statutory law in the jurisdiction where the anti-assignment clause was executed
D)  The Restatement of the Law of Contracts
E)  The Restatement (Second) of the Law of ContractsF) A) and E)
G) B) and E)

Question 14

Partial performance can override the statute of fraud's requirement for a written agreement.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a correct statement regarding the rights of an intended beneficiary?

Accepted Answer

A)  Intended beneficiaries may enforce their rights to a contract when both parties to the contract intended for the third party to benefit.
B)  Intended beneficiaries may enforce their rights to a contract if only one of the parties to the contract intended for the third party to benefit.
C)  Intended beneficiaries may enforce their rights to a contract,even if the parties to the contract did not specifically (in other words,purposefully) intend for the third party to benefit.
D)  Intended beneficiaries have no rights under a contract.
E)  Intended beneficiaries have the same rights under a contract as incidental beneficiaries.F) A) and E)
G) D) and E)

Question 16

Which of the following is an incorrect statement regarding the statute of frauds?

Accepted Answer

A)  It relates to fraudulent contracts.
B)  It does not address illegal contracts.
C)  It does not exist at the federal level.
D)  The statute requires that certain contracts be in writing.
E)  Some states have statutes of frauds created by judicial decision rather than legislation.F) B) and C)
G) D) and E)

Question 17

Not So Rich Uncle.Bruce is attempting to convince Sally to marry him.He promises her that if she will marry him,he will buy a new Mercedes automobile for her within six months of the marriage and take her on a world tour within a year of the marriage date.Sally reluctantly agrees,and they sign an agreement by which Bruce agrees to provide the Mercedes and world tour.Bruce and Sally marry on January 1.Unexpectedly,on March 1,Bruce's supposedly rich uncle,Frank,dies.Frank has no living relatives other than Bruce,and Frank's will leaves everything to Bruce,who is also appointed executor.In attempting to settle the estate,Bruce agrees orally to pay out of his own pocket Frank's debts totaling $10,000.Sally is concerned about Bruce's doing so.Bruce tells her not to worry because he will get all the money back when the estate settles.Bruce admits to a number of friends that he agreed to settle the debts out of his own pocket because he needed to obtain assets from the estate in a hurry.The assets were needed in large part to satisfy his obligations to Sally.Surprisingly,it later came to light that prior to his death Frank had signed away all his assets to his girlfriend in Argentina.There was nothing left in the estate for Bruce to inherit.Bruce disavowed his agreement to pay $10,000 to various creditors.Which of the following is true regarding Bruce's promises to Sally of a Mercedes and a trip?

Accepted Answer

A)  The promises fall within the statute of frauds.
B)  The promises do not fall within the statute of frauds because they involve material matters,not matters involving home and children.
C)  The promise regarding the Mercedes falls within the statute of frauds,but the promise regarding the trip does not.
D)  The promise regarding the trip falls within the statute of frauds,but the promise regarding the Mercedes does not.
E)  The promises would have fallen within the statute of frauds in earlier times in history,but would not fall within the statute of frauds in this day and time.F) C) and E)
G) A) and E)

Question 18

Which of the following is a false statement regarding a condition precedent?

Accepted Answer

A)  When an entire contract is conditioned on something occurring first,that first thing is known as a condition precedent.
B)  The parol evidence rule does not apply to evidence of a condition precedent.
C)  Evidence of the existence of a condition precedent agreed to orally is inadmissible.
D)  A contract is not modified by evidence of the existence of a condition precedent.
E)  A contract's enforceability is called into question by evidence of the existence of a condition precedent.F) A) and B)
G) B) and E)

Question 19

Painted House.Billy had a contract to paint Jan's house for $800 including the duty to clean up any debris.The contract between Billy and Jan did not contain an anti-assignment clause.Billy,who was very busy,assigned the contract,including the right to payment and the duty to paint,to Richard who was interested in making some extra money and had experience painting.Billy did not tell Jan about the assignment because he did not want any trouble nor did Richard mention the assignment to her.In fact,Richard never met Jan because he painted while she was at work.After Richard did a good job painting the house,Jan sent a check to Billy for $800.Billy needed the money to pay some bills,so he spent it.He thought he would have money coming in with which to pay Richard,but that did not happen.Richard asked Jan for $800 when it was not forthcoming from Billy.Jan refused.Richard said that he was going to sue her and Billy.Jan called Billy and told him that he had no right to assign the contract.Another problem involved disposal of debris.Although Richard was a good,competent painter,he forgot and left some old paint cans at Jan's house.Jan demanded that Billy come and properly dispose of the paint cans because they could not simply be put in the trash.Billy refused and told her that she would have to get Richard to dispose of the paint cans because that was his responsibility.What would be the likely result of a lawsuit brought by Richard against Jan to recover the $800?

Accepted Answer

A)  Richard will win because Jan accepted the risk that the contract would be assigned.
B)  Richard will win,but only if Billy has not been declared bankrupt because Jan will be able to recover the amounts at issue from Billy.
C)  Richard will win,but only if the assignment was for an amount under $1,000.
D)  Jan will win because she had no notice that the contract had been assigned and could,therefore,legally pay Billy.
E)  Jan will win,but only if the assignment was for an amount over $500.F) C) and E)
G) C) and D)

Question 20

The parol evidence rule is a common law rule that specifically addresses the admissibility of written evidence as it relates to oral contracts.

Accepted Answer

A) True 
 B)False

Exam 13: Contracts in Writing and Third-Party Contracts

Correct Answer
verified

Pursuant to the equitable theory of post hoc ergo propter hoc,an intended beneficiary can enforce her rights to a contract before the rights vest.

Correct Answer
verified

Which of the following is an incorrect statement regarding the statute of frauds?

Correct Answer
verified

Which of the following is a consideration of courts in determining whether a person is an incidental beneficiary or merely an intended beneficiary?

Correct Answer
verified

When a court deems a contract integrated,parol evidence is generally inadmissible.

Correct Answer
verified

Which of the following is a false statement regarding a condition precedent?

Correct Answer
verified

Which of the following is a correct statement regarding the rights of an intended beneficiary?

Correct Answer
verified

Correct Answer
verified

A(n) ________ is created when two parties enter into a contract with the intended purpose of benefiting a third party.

Correct Answer
verified

Correct Answer
verified

Which of the following is determinative regarding the effectiveness of an anti-assignment clause?

Correct Answer
verified

An intended beneficiary is a third party to a contract whom the contracting parties intended to benefit directly from their contract.

Correct Answer
verified

The parol evidence rule is a common law rule that specifically addresses the admissibility of written evidence as it relates to oral contracts.

Correct Answer
verified

The statute of frauds is intended to prevent unreliable ________ evidence from interfering with a contractual relationship.

Correct Answer
verified

In determining whether a third party is an intended beneficiary,courts ask whether the contracting parties intended the third party to be the ________ beneficiary of the contract.

Correct Answer
verified

The Uniform Commercial Code requires assignments to be in writing when the amount being assigned is less than $500.

Correct Answer
verified

What is the term for the third party who receives an assignment of contract rights?

Correct Answer
verified

Partial performance can override the statute of fraud's requirement for a written agreement.

Correct Answer
verified

The ________ rule is a common law rule that addresses the admissibility of oral evidence as it relates to written contracts.

Correct Answer
verified

List the types of contractual rights that cannot be assigned.

Correct Answer
verified
Contractual rights that cannot be assign...
View Answer

Exam 13: Contracts in Writing and Third-Party Contracts

Correct AnswerverifiedShow Answer

Pursuant to the equitable theory of post hoc ergo propter hoc,an intended beneficiary can enforce her rights to a contract before the rights vest.

Correct AnswerverifiedShow Answer

Which of the following is an incorrect statement regarding the statute of frauds?

Correct AnswerverifiedShow Answer

Which of the following is a consideration of courts in determining whether a person is an incidental beneficiary or merely an intended beneficiary?

Correct AnswerverifiedShow Answer

When a court deems a contract integrated,parol evidence is generally inadmissible.

Correct AnswerverifiedShow Answer

Which of the following is a false statement regarding a condition precedent?

Correct AnswerverifiedShow Answer

Which of the following is a correct statement regarding the rights of an intended beneficiary?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A(n) ________ is created when two parties enter into a contract with the intended purpose of benefiting a third party.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is determinative regarding the effectiveness of an anti-assignment clause?

Correct AnswerverifiedShow Answer

An intended beneficiary is a third party to a contract whom the contracting parties intended to benefit directly from their contract.

Correct AnswerverifiedShow Answer

The parol evidence rule is a common law rule that specifically addresses the admissibility of written evidence as it relates to oral contracts.

Correct AnswerverifiedShow Answer

The statute of frauds is intended to prevent unreliable ________ evidence from interfering with a contractual relationship.

Correct AnswerverifiedShow Answer

In determining whether a third party is an intended beneficiary,courts ask whether the contracting parties intended the third party to be the ________ beneficiary of the contract.

Correct AnswerverifiedShow Answer

The Uniform Commercial Code requires assignments to be in writing when the amount being assigned is less than $500.

Correct AnswerverifiedShow Answer

What is the term for the third party who receives an assignment of contract rights?

Correct AnswerverifiedShow Answer

Partial performance can override the statute of fraud's requirement for a written agreement.

Correct AnswerverifiedShow Answer

The ________ rule is a common law rule that addresses the admissibility of oral evidence as it relates to written contracts.

Correct AnswerverifiedShow Answer

List the types of contractual rights that cannot be assigned.

Correct AnswerverifiedContractual rights that cannot be assign...View AnswerShow Answer

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Contractual rights that cannot be assign...
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