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