Question 6: Assume that Basil, a world-famous chef, has signed a contract to give lessons in French cooking to Marge. If Basil attempts to delegate his duties under the contract to Oliver, the operator of an open-pit barbecue shack, then the delegation of duties will:

(a)Be valid

(b)Be valid only if Oliver is a highly regarded barbecue chef

(c)Not be valid because performance of the contract depends on Basil's unique talents and skills

(d)Not be valid only if Marge detests barbecued foods

Question 7:A contract may not be delegated when:

(a)Performance depends on the personal skills or talents of the obligor -

(b)Special trust has been placed in the obligor

(c)Performance by a third party will vary materially from the performance expected by the obligee under the contract

(d)All of the above

Question 8:Intended beneficiaries:

(a)Have usually given consideration in exchange for any rights they may have in a contract

(b)Have legal rights in contracts to which they are not original parties

(c)May not enforce the original contract against either of the contracting parties

(d)None of the above

Question 9: If Edgar and William enter into a contract providing that Edgar will fix William's car in exchange for William paying a preexisting debt owed by Edgar to Kate, then Kate would be:

(a)An assignee

(b)A creditor beneficiary

(c)A donee beneficiary

(d)An incidental beneficiary

Question 10: If Rex takes out a life insurance policy that names his daughter, Susan, as the beneficiary, then the insurance policy may be characterized as:

(a)An assignment of rights

(b)A delegation of duties

(c)A third party incidental beneficiary contract

(d)A third party donee beneficiary contract

Question 11: If Allison and Bob sign a contract that confers a benefit on Paula, an intended third party beneficiary, then Paula's rights will vest when she:

(a)Brings suit to compel performance of the contract

(b)Materially alters her position in reliance on the contract

(c)Learns about the contract and consents to its provisions

(d)All of the above

Question 12: Which of the following parties does not have any rights under a contract?

(a)A donee beneficiary

(b)A creditor beneficiary

(c)An incidental beneficiary

(d)An assignee

Question 13: A contract may be discharged by:

(a)Agreement of the parties

(b)Performance

(c)The occurrence of a condition

(d)All of the above

Question 14: Clive's agreement to buy a sports car subject to the condition that he be approved by a bank for the necessary financing is an example of:

(a)A condition precedent

(b)A concurrent condition

(c)A condition subsequent

(d)An illegal condition

Question 15: Horst's promise to pay for a package when the mail carrier delivers it to his door is an example of:

(a)A condition precedent

(b)A concurrent condition

(c)A condition subsequent

(d)An illegal condition

Question 16: A duty to perform a contract that is absolute may be discharged by the occurrence of:

(a)A condition precedent

(b)A concurrent condition

(c)A condition subsequent

(d)An illegal condition

Question 17: Suppose that Ray substantially performs his contract to build a spare bedroom for Yerkle but has been unable to secure the building materials needed to finish the job despite his best efforts. Yerkle normally is:

(a)Not required to pay Ray until the job is completed

(b)Not required to pay Ray until he obtains the needed supplies

(c)Required to pay Ray the amount due under the contract

(d)Required to pay Ray the amount due under the contract less the cost of completing the job

Question 18: If Oscar agrees to paint Vinny's sports car but fails to put a pinstripe around each of the headlights as called for in the contract, then the fact that Oscar has done everything else required under the contract would constitute:

(a)Complete performance (bj Substantial performance

(c)A material breach

(d)None of the above

Question 19:Assume that Jan and Mo enter into a contract in which Jan agrees to sell her boat to Mo for $1,000. If both of the parties change their minds prior to performing the contract and agree to cancel it, then this would be an example of:

(a)A delegation

(b)An anticipatory repudiation

(c)A novation

(d)A rescission

Question 20: Assume that Whatley and Berkshire desire to have Green replace Berkshire as a party to the contract. The parties can best accomplish that objective by arranging for:

(a)A nullification

(b)A novation

(c)An accord and satisfaction

(d)A simultaneous performance of their contractual obligations

Question 21: If Dana enters into an agreement with Josephine to provide her with palm reading services for one hour each month for one year, the fact that the state legislature subsequently passes a law making palm reading illegal will:

(a)Discharge the contract

(b)Fulfill the terms and conditions of the contract

(c)Not affect the contract because palm reading was legal when the contract was formed

(d)None of the above

Question 22: If Frank agrees to work as George' s personal physician for one year but dies in the second month of his contract, then Frank' s estate:

(a)Will be discharged from any contractual liability

(b)Must find an equally competent doctor to serve as George's personal physician for the remainder of the contract

(c)Must refund any monies already collected on the contract due to Fran.k's inability to perform his contractual obligations

(d)Must pay liquidated damages

Question 23:Ann and Burt sign a contract in which Ann agrees to paint Burt's house for $2,000. They agree later that Burt will pay Ann's supplier, City Paint Store, the $2,000 directly. City Paint Store is:

(a)A delegatee

(b)An assignee

(c)An incidental beneficiary

(d)An intended beneficiary

Question 24: National Steel, Inc., and Overland Transport Company enter into a contract. Superior Oil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of:

(a)Assignment

(b)Delegation

(c)Privity

(d)Vesting

Question 25: Peg's transfer of rights under her contract with Quinn to Rob is:

(a)A delegation

(b)An assignment

(c)A third party beneficiary contract

(d)Not a delegation, an assignment, or a third party beneficiary contract

Question 26: Allen and Barb enter into a contract. This contract may not be assigned if:

(a)The assignment will materially in rease the risk of nonperformance

(b)The assignment is expressly prohibited by the terms of the contract

(c)The contract is uniquely personal in nature

(d)Any of the above

Question 27: Lois takes out a life insurance policy that names her son, Matt, as the beneficiary.

This is:

(a)A delegation

(b)An assignment

(c)A third party incidental beneficiary contract

(d)A third party intended beneficiary contract

Question 28: Edgar and William agree that Edgar will fix William's car in exchange for William paying a preexisting debt owed by Edgar to Kate. Kate is:

(a)An assignee

(b)An intended beneficiary

(c)An incidental beneficiary

(d)None of the above

Question 29: Don agrees to buy Ed's Bicycle Store on the condition that First State Bank approves the financing. This approval is:

(a)A concurrent condition

(b)A condition precedent

(c)A condition subsequent

(d)A solvent condition

Question 30: Fred and Ed sign a contract by which Fred agrees to deliver a washing machine on July 31 in exchange for Ed's promis to pay the $500 purchase price on July

31. The delivery of the washing machine and the payment of $500 are examples of:

(a)Conditions precedent

(b)Concurrent conditions

(c)Conditions subsequent

(d)Illegal conditions

Question 31: A third party beneficiary contract is formed when the parties to a contract intend to confer a benefit on a third party, including the right to enforce the contract against the original contractual parties. (T or F)

Question 32: Works of art, medical or dental work, and tailoring are considered to be personal service contracts in which performance must personally satisfy the party to which performance is owed. (T or F)

Question 33: If John agrees to write song for Elvira if the Mets win the World Series, then the fact that the Mets fail to reach the playoffs will discharge John's obligation to write the song. (T or F)

Question 34: The cowis have almost uniformly held that an intentional vanahon from a contract, even if made with good motives, will prevent substantial performance of the contract. (T or F)

Question 35: A party to a contract may transfer the rights arising from the contract to another . (Tor F)

Question 36: The rights under a contract for personal service normally can be assigned. (Tor F)

Question 37: A contract that contains a clause prohibiting its assignment will prevent it from being assigned. (T or F)

Question 38: A breach of contract occurs only when a party fails to perform all of his or her duties under a contract. (T or F)

Question 39: Anticipatory repudiation often occurs when price fluctuations render performance of a contract extremely unfavorable to one of the parties. (Tor F)

Question 40: The formation of a contract whose performance will discharge a previous contract is a novation. (T or F)