QUESTION 41

Eric provides snow removal services to a number of businesses. He cannot personally perform all of his obligations under each contract, so he arranges for third parties to do perform some of the work. In these circumstances, Eric cannot

a) unilaterally assign his contractual obligations to the third parties to escape liability.b) pay the third parties any more than the contract price.c) fail to advise his customers that third parties are performing the work.d) take a vacation while the work is being performed.e) hire his own employees to do the work.

QUESTION 42

Occasionally,atthetime of contract formation,the existence of P is not disclosed by the agent A to third party.Then, the third party who formed contract by dealing with Adiscovers thatA was acting as P's agent.Thecontracting party "P" who, unknown to the other third party,was represented by an agent is called:

a) a secondary agent.

b) a principal.

c) an undisclosed principal.

d) a collateral agent.

e) a collateral principal.

QUESTION 43

A party to a contract can unilaterally assign

a) liabilities but not rights.b) obligations but not benefits.c) obligations and benefits.d) rights but not liabilities.e) rights as well as liabilities.

QUESTION 44

An assignment of rights and a sale of goods are similar. In a sale of goods, the subject matter of the transfer is the ownership in goods. In an assignment, the subject matter of the transfer is

a) a chose in possession.b) an intangible asset - an unperformed contractual right.c) an equitable assignment.d) a receiving order.e) a tangible asset - all chattels personal

QUESTION 45

A novation agreement is only effective if

a) the parties to the original contract and the new party introduced by novation consent.

b) the original parties to the contract have already performed their obligations under the agreement.

c) the assignee and assignor serve a notice in writing upon the debtor.

d) the assignor takes the assignment subject to the equities.

e) a new party is substituted into the contract unilaterally by promisor.