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Exam 13: Contracts in Writing and Third-Party Contracts

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Question 71

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Painted House.Billy had a contract to paint Jan's house for $800 including the duty to clean up any debris.The contract between Billy and Jan did not contain an anti-assignment clause.Billy,who was very busy,assigned the contract,including the right to payment and the duty to paint,to Richard who was interested in making some extra money and had experience painting.Billy did not tell Jan about the assignment because he did not want any trouble nor did Richard mention the assignment to her.In fact,Richard never met Jan because he painted while she was at work.After Richard did a good job painting the house,Jan sent a check to Billy for $800.Billy needed the money to pay some bills,so he spent it.He thought he would have money coming in with which to pay Richard,but that did not happen.Richard asked Jan for $800 when it was not forthcoming from Billy.Jan refused.Richard said that he was going to sue her and Billy.Jan called Billy and told him that he had no right to assign the contract.Another problem involved disposal of debris.Although Richard was a good,competent painter,he forgot and left some old paint cans at Jan's house.Jan demanded that Billy come and properly dispose of the paint cans because they could not simply be put in the trash.Billy refused and told her that she would have to get Richard to dispose of the paint cans because that was his responsibility.Which of the following is true regarding Jan's statement to Richard that he had no right to delegate duties under the contract?

A) Jan is correct because a type of personal service was involved.
B) Jan is correct because the contract did not specifically give Richard the right to assign the contract.
C) Jan is correct,both because a type of personal service was involved and because the contract did not specifically give Richard the right to assign the contract.
D) Jan is incorrect because the contract was not a personal service,and there was no requirement that the contract specifically reference the right to assign rights and duties.
E) Jan is incorrect only because the contract and assignment were for an amount under $1,000.Otherwise,Richard had no right to assign the contract.

F) A) and C)
G) C) and E)

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Question 72

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Which of the following parties must sign a document coming within the statute of frauds?

A) The party against whom action is sought
B) The offeror only
C) The offeree only
D) Only a person who has agreed to pay the debt of another
E) Any party to the contract

F) A) and B)
G) None of the above

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Question 73

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A(n) ________ beneficiary is one who unintentionally gains a benefit from a contract between other parties.

Although an intended beneficiary can enforce her rights to a contract,she cannot do so until her rights to the contract ________.

A delegation occurs when a party to a contract transfers her rights to a contract to a third party.

There is no federal statute of frauds.

Painted House.Billy had a contract to paint Jan's house for $800 including the duty to clean up any debris.The contract between Billy and Jan did not contain an anti-assignment clause.Billy,who was very busy,assigned the contract,including the right to payment and the duty to paint,to Richard who was interested in making some extra money and had experience painting.Billy did not tell Jan about the assignment because he did not want any trouble nor did Richard mention the assignment to her.In fact,Richard never met Jan because he painted while she was at work.After Richard did a good job painting the house,Jan sent a check to Billy for $800.Billy needed the money to pay some bills,so he spent it.He thought he would have money coming in with which to pay Richard,but that did not happen.Richard asked Jan for $800 when it was not forthcoming from Billy.Jan refused.Richard said that he was going to sue her and Billy.Jan called Billy and told him that he had no right to assign the contract.Another problem involved disposal of debris.Although Richard was a good,competent painter,he forgot and left some old paint cans at Jan's house.Jan demanded that Billy come and properly dispose of the paint cans because they could not simply be put in the trash.Billy refused and told her that she would have to get Richard to dispose of the paint cans because that was his responsibility.Which of the following is true regarding Billy's claim that he had no duty to pick up the paint cans?

Under the Uniform Commercial Code,contracts for the sale of goods totaling ________ or more must be in writing.

The statute of frauds requires that both contracting parties sign the written agreement.

Both assignments and delegations transfer rights to a contract.

A prenuptial agreement is an agreement two parties enter into before the marriage that states the date certain on which the marriage relationship will effectively terminate.

Which of the following is an incorrect statement regarding the statute of frauds and promises made in consideration of marriage?

The statute of frauds serves to protect promisors from poorly written contracts.