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BLW 201 10TH ED CHAPTER 16 T/F SELF QUIZ



True/False
Indicate whether the sentence or statement is true or false.
 

 1. 

A party to a contract may transfer the rights arising from the contract to another.
 

 2. 

Banks may assign their loan contracts to other firms.
 

 3. 

An assignee of a right to receive money acquires any rights to the money held by the assignor.
 

 4. 

The rights under a contract for personal service normally can be assigned.
 

 5. 

A contract that contains a clause prohibiting its assignment will prevent it from being assigned.
 

 6. 

A right to receive income can be assigned.
 

 7. 

An assignment of rights in real estate can always be prohibited.
 

 8. 

An assignment is effective only after notice has been given to the obligor.
 

 9. 

Generally, a party may not delegate his or her duties under a contract.
 

 10. 

A third party beneficiary contract is formed only when the parties to a contract intend to confer a benefit on a third party.
 

 11. 

Generally, a clause in a contract permitting "the assignment of all rights" does not include a delegation of all duties.
 

 12. 

An intended beneficiary can sue directly to enforce a promisor's promise.
 

 13. 

A third party beneficiary contract is formed when a contract confers a benefit on any third party.
 

 14. 

A creditor beneficiary can sue directly to enforce a promisor's promise.
 

 15. 

A donee beneficiary can never sue to enforce the promise of a promisor.
 

 16. 

The vesting of contractual rights in a third party will always prevent the original parties to the contract from modifying it.
 

 17. 

If a contract does not require that performance be rendered directly to a third party, the third party may be considered an incidental beneficiary.
 

 18. 

If a contract does not require that performance be rendered directly to a third party, the third party will be considered an intended beneficiary.
 

 19. 

An incidental beneficiary can sue directly to enforce a promisee's promise.
 

 20. 

An incidental beneficiary can sue directly to enforce a promisor's promise.
 



 
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