LSU BLAW 3201 FRY Final Exam Cengage Newest
2025 Complete Questions And Correct Answers
(Verified Answers)
/. The transfer of a contract right to a third party is known as a(n): - Answer-assignment
/.A(n) __________ is a substitution for an old contract with a new one that either
replaces an existing obligation with a new obligation with a new obligation or replaces
an original party with a new party. - Answer-novation
/.When a contract is intended to benefit a third person, such a person is a(n): - Answer-
intended beneficiary.
/.A(n) __________ is an intended beneficiary of a contract who receives the benefits of
the contract as a gift. - Answer-donee beneficiary
/.Which of the following is true about the vesting of an incidental beneficiary's rights? -
Answer-An incidental beneficiary was not meant to benefit from the contract, thus he
acquires no rights
/.A(n) __________ stands exactly in the position of the __________. - Answer-
assignee; assignor
/.Not all classes of beneficiaries receive rights in the underlying contract. Which one
does not? - Answer-Incidental beneficiaries.
/.A clear and specific contractual prohibition against the assignment of rights
__________ enforceable at common law. - Answer-is
/.The party owing a debt under a contract is the: - Answer-obligor
/.Which of the following is/are true concerning the requirements for the form of an
assignment? - Answer-- An assignment may be in any form.
- Statutes may require certain assignments be in writing or executed in a particular form.
- Any words, written or spoken, that show an intention to transfer or assign will be
respected.
/.Sometimes the promisee's primary intent is to discharge a duty to a third party. Which
of the following describes that type of contract? - Answer-A contract where the insured
names a bank with which he has a loan as the beneficiary of a life insurance policy.
, /.Which of the following duties would not be delegable? - Answer-Andy has a duty to
teach an accounting class at a community college during the fall semester.
/.Officer Friendly has a life insurance policy on his own life that provides that in the
event of his death, his mother will receive the proceeds. Officer Friendly's mother is
a(n): - Answer-donee beneficiary.
/.Trent wants to buy a new car. He goes to the bank to get a loan for the purchase, and
signs an agreement to pay $15.00 per month in premiums on a term life insurance
policy which names the bank as the recipient of the policy proceeds in the event of his
death before the loan is repaid. The bank is a(n): - Answer-creditor beneficiary.
/.Randolph enters into a contract with a contractor to build a large office building in
Central City. Gas-N-Go will greatly benefit from this contract since his convenience
store is adjacent to the building. Gas-N-Go in this instance is: - Answer-an incidental
beneficiary.
/.Drake, a contractor, and Lonnie, a landowner, have a contract whereby Drake is to
perform routine construction services according to the blueprints that Lonnie has
provided. Drake assigns the contract to Brad, a developer. As a result of this
assignment: - Answer-Drake no longer has any rights under the contract, but he
remains responsible for the duties he agreed to perform.
/.In which of the following situations is there a third party incidental beneficiary who
would be unable to enforce the agreement? - Answer-A t-shirt store hoping to sell
national championship t-shirts, located across the street from a stadium where the
home team loses the national championship due to a bad call by the referee hired by
the conference.
/.Brandon promises Debbie to deliver an iPad to Edward if Debbie promises to pay
Brandon $200. What is Edward's status in this agreement? - Answer-Intended
Beneficiary
/.Brandon promises Debbie to deliver a fully-working iPad if Debbie promises to pay
Brandon $200. Debbie then gives the iPad to Edward. Unfortunately, the iPad is
defective and will not turn on for Edward. If Edward sues Brandon for breach of
contract, will he be successful? - Answer-No, because Edward is an incidental
beneficiary.
/.Will owes Juan $1,000 due on July 1. Juan assigns the debt to Joshua on June 1, but
neither Juan nor Joshua informs Will. On July 1, Will pays Juan $1,000. Is Will fully
discharged from his obligation? - Answer-Yes, because he did not receive notice of
Juan's assignment to Joshua.
/.Patty owes a legal duty to Nancy because Patty owes Nancy money from a previous
obligation. Later, Patty makes a loan contract with Lee, where Lee owes Patty $5,000.
2025 Complete Questions And Correct Answers
(Verified Answers)
/. The transfer of a contract right to a third party is known as a(n): - Answer-assignment
/.A(n) __________ is a substitution for an old contract with a new one that either
replaces an existing obligation with a new obligation with a new obligation or replaces
an original party with a new party. - Answer-novation
/.When a contract is intended to benefit a third person, such a person is a(n): - Answer-
intended beneficiary.
/.A(n) __________ is an intended beneficiary of a contract who receives the benefits of
the contract as a gift. - Answer-donee beneficiary
/.Which of the following is true about the vesting of an incidental beneficiary's rights? -
Answer-An incidental beneficiary was not meant to benefit from the contract, thus he
acquires no rights
/.A(n) __________ stands exactly in the position of the __________. - Answer-
assignee; assignor
/.Not all classes of beneficiaries receive rights in the underlying contract. Which one
does not? - Answer-Incidental beneficiaries.
/.A clear and specific contractual prohibition against the assignment of rights
__________ enforceable at common law. - Answer-is
/.The party owing a debt under a contract is the: - Answer-obligor
/.Which of the following is/are true concerning the requirements for the form of an
assignment? - Answer-- An assignment may be in any form.
- Statutes may require certain assignments be in writing or executed in a particular form.
- Any words, written or spoken, that show an intention to transfer or assign will be
respected.
/.Sometimes the promisee's primary intent is to discharge a duty to a third party. Which
of the following describes that type of contract? - Answer-A contract where the insured
names a bank with which he has a loan as the beneficiary of a life insurance policy.
, /.Which of the following duties would not be delegable? - Answer-Andy has a duty to
teach an accounting class at a community college during the fall semester.
/.Officer Friendly has a life insurance policy on his own life that provides that in the
event of his death, his mother will receive the proceeds. Officer Friendly's mother is
a(n): - Answer-donee beneficiary.
/.Trent wants to buy a new car. He goes to the bank to get a loan for the purchase, and
signs an agreement to pay $15.00 per month in premiums on a term life insurance
policy which names the bank as the recipient of the policy proceeds in the event of his
death before the loan is repaid. The bank is a(n): - Answer-creditor beneficiary.
/.Randolph enters into a contract with a contractor to build a large office building in
Central City. Gas-N-Go will greatly benefit from this contract since his convenience
store is adjacent to the building. Gas-N-Go in this instance is: - Answer-an incidental
beneficiary.
/.Drake, a contractor, and Lonnie, a landowner, have a contract whereby Drake is to
perform routine construction services according to the blueprints that Lonnie has
provided. Drake assigns the contract to Brad, a developer. As a result of this
assignment: - Answer-Drake no longer has any rights under the contract, but he
remains responsible for the duties he agreed to perform.
/.In which of the following situations is there a third party incidental beneficiary who
would be unable to enforce the agreement? - Answer-A t-shirt store hoping to sell
national championship t-shirts, located across the street from a stadium where the
home team loses the national championship due to a bad call by the referee hired by
the conference.
/.Brandon promises Debbie to deliver an iPad to Edward if Debbie promises to pay
Brandon $200. What is Edward's status in this agreement? - Answer-Intended
Beneficiary
/.Brandon promises Debbie to deliver a fully-working iPad if Debbie promises to pay
Brandon $200. Debbie then gives the iPad to Edward. Unfortunately, the iPad is
defective and will not turn on for Edward. If Edward sues Brandon for breach of
contract, will he be successful? - Answer-No, because Edward is an incidental
beneficiary.
/.Will owes Juan $1,000 due on July 1. Juan assigns the debt to Joshua on June 1, but
neither Juan nor Joshua informs Will. On July 1, Will pays Juan $1,000. Is Will fully
discharged from his obligation? - Answer-Yes, because he did not receive notice of
Juan's assignment to Joshua.
/.Patty owes a legal duty to Nancy because Patty owes Nancy money from a previous
obligation. Later, Patty makes a loan contract with Lee, where Lee owes Patty $5,000.
