QUESTION 1

1. If a contract expressly reserves to the contracting parties the right to cancel, rescind, or modify the contract, then the rights of the third party beneficiary are subject to any changes made by the contracting parties.

   True

   False

10 points

QUESTION 2

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

   True

   False

10 points

QUESTION 3

1. Assignments of negotiable instruments are not generally permitted.

   True

   False

10 points

QUESTION 4

1. A delegation does not relieve the party making it of the obligation to perform if the party to whom the duty is delegated fails to perform.

   True

   False

10 points

QUESTION 5

1. The fact that a contract contains a clause prohibiting its assignment ordinarily will prevent it from being assigned.

   True

   False

10 points

QUESTION 6

1. An incidental beneficiary is never entitled to enforce the promise of a promisor.

   True

   False

10 points

QUESTION 7

1. An unconditional assignment of rights in a contract will extinguish the rights of the assignor.

   True

   False

10 points

QUESTION 8

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

   True

   False

10 points

QUESTION 9

1. A creditor beneficiary is entitled to sue the promisor directly to enforce his or her promise.

   True

   False

10 points

QUESTION 10

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

   True

   False