Question
The transfer of contractual rights to a third party is known as a(n): obligor delegator obligee assignment In a contract, the person to whom a
The transfer of contractual rights to a third party is known as a(n):
obligor
delegator
obligee
assignment
In a contract, the person to whom a duty, or obligation, is owed is the
assignment
obligor
delegator
obligee
In a contract, the person who is obligated to perform a duty is the
assignment
obligee
delegation
obligor
Consumer takes out a loan with Wells Fargo Bank. Wells Fargo Bank later assigns its rights to the contract to Bank of America. Wells Fargo is the
assignee
novation
delegation
assignor
Which of the following contractual rights cannot be assigned?
Right to receive payment under business loan contracts
Personal services
Right to receive payment under consumer loan contracts
The transfer of contractual duties to a third party is called a(n):
novation
delegation
assignment
obligee
In a contract, the party delegating the duties is the
delegatee
obligee
delegator
assignee
In a contract, the party to whom the duties are delegated is the
delegatee
delegator
assignee
novation
Consumer buys a large TV from Best Buy. Best Buy delegates the duty to deliver the TV to Consumer to Joe's Moving Company. Joe's Moving Company is the
delegator
assignee
delegatee
novation
Jane buys life insurance from Life Insurance Company. On the policy, Jane names her son Joe as the beneficiary to receive money from the policy if she dies. Joe is a(n):
novation
delegator
incidental beneficiary
intended beneficiary
Sue hires painter Paul to paint her house. Paul does a terrible job, and the house looks worse than before he painted. Sue's neighbor Joyce wants to file a lawsuit against Paul. Is Joyce likely to be successful if she files such a lawsuit?
Yes, because she is an intended beneficiary of the contract between Sue and Paul
Only if Paul delegated his duty to paint to someone else
No, because she is an incidental beneficiary of the contract between Sue and Paul
An event that has a triggering effect on the contractual obligations is a _______________.
discharge
recission
condition
delegation
True or False?
In a contract, when the time or deadline to perform is expressly stated to be "of the essence" or vital, the parties normally must perform within the stated time period because the time element becomes a condition of the contract.
False
True
In contract law, an unconditional offer to perform by a person who is ready, willing, and able to do so is called:
delegate
condition
tender
novation
When a party performs a contract exactly, perfectly as agree, this is called:
complete performance
breach of contract
novation
substantial performance
The nonperformance of a contractual duty is a(n)
assignment
condition
delegation
breach of contract
Before either party to a contract has a duty to perform, one of the parties may refuse to carry out his/her contractual obligations. This is called
novation
anticipatory repudiation
assignment
a condition
The process by which a contract is canceled or terminated and the parties are returned to the positions they occupied prior to forming the contract is called
assignment
anticipatory repudiation
novation
rescission
A _____________________ occurs when both of the parties to a contract agree to substitute a third party for one of the original parties.
rescission
condition
novation
assignment
When one of the parties to a personal contract dies or becomes incapacitated prior to performance, this qualifies as grounds for the discharge of contractual obligations based on
rescission
bankruptcy
novation
impossibility of performance
Contractor signs a contract with Homeowner to build a new, two-story house. Before Contractor starts work, the City where the house is supposed to be built passes an ordinance that prohibits construction of any new, two-story houses. If Contractor does not start work and build the two-story house, is Contractor in breach of the contract with Homeowner?
No, unless Homeowner has died.
No, because the change in the law makes Contractor's performance illegal.
Yes, Contractor must start work immediately before he can be arrested.
No, because Contractor is still capable of building the house.
If performance of a contract becomes significantly more difficult or costly, and this was not foreseeable by the parties when the contract was made, performance of the contract may be excused based on
statute of limitations
illegality
novation
commercial impracticability
Damages that compensate the nonbreaching party for the loss of the bargain are known as
compensatory damages
punitive damages
nominal damages
consequential damages
Sam and Tom signed a contract with Party Company to rent tables, chairs, etc. for their wedding reception. The contract price was $15, 000, to be paid when the goods were delivered for the reception. The week before the reception, Party Company called Sam and Tom to say they would not be able to provide the tables, chairs, etc. for the reception. Sam and Tom found another company, Hooray Productions, to rent the goods. The price for this contract was $20,000. In a breach of contract lawsuit, what would Party Company likely owe Sam and Tom in compensatory damages?
$5,000
$15,000
$20,000
$0
Foreseeable damages that result from a party's breach of contract are called:
profit damages
consequential damages
nominal damages
punitive damages
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