CYU Quizzes - Exam 2 Questions and Answers Already Passed
True or false: In order for an assignment to be valid, you must use an assignment form. -
Answers False
True or false: A third party who is intended to directly benefit from a contract made by two
contracting parties is called an incidental beneficiary. - Answers False
True or false: A donee beneficiary is a third party that benefits from a contract in which the
promisor agrees to pay the promisee's debt in return for compensation plus interest. - Answers
False
True or false: In determining whether a party is an incidental or intended beneficiary, one factor
courts consider is whether the contract directly states that the third party is the benefitting party.
- Answers True
Parties not in _________________ usually do not have rights to a contract. - Answers Privity of
contract
Delvin agrees in a contract to paint a picture for Melanie. Delvin is a(n) __________________. -
Answers Obligor
Hilda transfers her rights to a contract to George who is a third party. Hilda is known as the
_____________ and George is the _____________________. - Answers Assignor, assignee
All of the following are rights that may not be assigned except: - Answers Rights to recover
damages after a breach of contract
Theresa agrees to mow Huan's yard for $300 for the summer. Huan wishes to assign the
contract to his grandmother. Theresa objects because Huan's yard is very small while his
grandmother's is over an acre. Which of the following is the correct legal outcome for the
dispute between Theresa and Huan? - Answers Theresa will win because Huan's attempted
assignment would increase the duties to which she agreed.
Which rule affirms that in the case of multiple assignments of the same right, the first party
granted the assignment is the party correctly entitled to the contractual right? - Answers The
first-assignment-in-time rule
True or false: Whenever possible, courts award equitable relief rather than monetary damages. -
Answers False
True or false: Compensatory damages are designed to put the plaintiff in the position he would
have been in had the contract been fully performed. - Answers True
Layla and Barbara enter into a contract to sell snow cones where Layla will bring the ice and
flavors and Barbara will supply the cups and straws. Layla brings the ice and flavors as
True or false: In order for an assignment to be valid, you must use an assignment form. -
Answers False
True or false: A third party who is intended to directly benefit from a contract made by two
contracting parties is called an incidental beneficiary. - Answers False
True or false: A donee beneficiary is a third party that benefits from a contract in which the
promisor agrees to pay the promisee's debt in return for compensation plus interest. - Answers
False
True or false: In determining whether a party is an incidental or intended beneficiary, one factor
courts consider is whether the contract directly states that the third party is the benefitting party.
- Answers True
Parties not in _________________ usually do not have rights to a contract. - Answers Privity of
contract
Delvin agrees in a contract to paint a picture for Melanie. Delvin is a(n) __________________. -
Answers Obligor
Hilda transfers her rights to a contract to George who is a third party. Hilda is known as the
_____________ and George is the _____________________. - Answers Assignor, assignee
All of the following are rights that may not be assigned except: - Answers Rights to recover
damages after a breach of contract
Theresa agrees to mow Huan's yard for $300 for the summer. Huan wishes to assign the
contract to his grandmother. Theresa objects because Huan's yard is very small while his
grandmother's is over an acre. Which of the following is the correct legal outcome for the
dispute between Theresa and Huan? - Answers Theresa will win because Huan's attempted
assignment would increase the duties to which she agreed.
Which rule affirms that in the case of multiple assignments of the same right, the first party
granted the assignment is the party correctly entitled to the contractual right? - Answers The
first-assignment-in-time rule
True or false: Whenever possible, courts award equitable relief rather than monetary damages. -
Answers False
True or false: Compensatory damages are designed to put the plaintiff in the position he would
have been in had the contract been fully performed. - Answers True
Layla and Barbara enter into a contract to sell snow cones where Layla will bring the ice and
flavors and Barbara will supply the cups and straws. Layla brings the ice and flavors as
