2025 Updated BUL CH 16 Assessment Questions &
Verified Correct answers (A+ Guarantee)
Regional Steel, Inc., and Overland Transport Company enter into a con¬tract. Smooth Oil
Corporation, which will indirectly benefit from the deal, is prevented from having rights under
the contract by the principle of
a. assignment.
b. delegation.
c. privity.
d. vesting. - correct answer✔✔C
Robert enters into a contract with Claire. Claire agrees to paint Robert's living room for $500.
Claire is the
a. obligor.
b. obligee.
c. assignee.
d. assignor. - correct answer✔✔A
Jayson and MaryElise enter into a contract. Jayson agrees to mow MaryElise's yard every week
for the summer. MaryElise is the
a. obligor.
b. obligee.
c. assignee.
d. assignor. - correct answer✔✔B
, Stephanie's sale of rights she has under a contract with Runway Retail, Inc., to buy the retailer's
clothing overstock is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices. - correct answer✔✔B
Revenue & Sales Corporation and Software Solutions, Inc., enter into a contract for the design of
custom software for which Revenue & Sales agrees to pay $4,500. Software Solutions transfers
the right to payment under the contract to Creditline Company. Creditline is
a. an assignor.
b. an assignee.
c. an obligee.
d. a delegate. - correct answer✔✔B
Will owes Jenny $1,000. Brad owes Will $1,000. Will unconditionally assigns his rights to
Jenny. Will's right to the $1,000 is then
a. unchanged.
b. extinguished.
c. incidental.
d. assigned to a court. - correct answer✔✔B
Forrest makes and sells furniture. Forrest and Glenda enter into a contract for the delivery of
Forrest 's products to Glenda's Gear retail locations for which she agrees to pay the invoiced
price. Forrest transfers the right to payment under the contract to Haulers Trucks & Trailers. This
transfer is
Verified Correct answers (A+ Guarantee)
Regional Steel, Inc., and Overland Transport Company enter into a con¬tract. Smooth Oil
Corporation, which will indirectly benefit from the deal, is prevented from having rights under
the contract by the principle of
a. assignment.
b. delegation.
c. privity.
d. vesting. - correct answer✔✔C
Robert enters into a contract with Claire. Claire agrees to paint Robert's living room for $500.
Claire is the
a. obligor.
b. obligee.
c. assignee.
d. assignor. - correct answer✔✔A
Jayson and MaryElise enter into a contract. Jayson agrees to mow MaryElise's yard every week
for the summer. MaryElise is the
a. obligor.
b. obligee.
c. assignee.
d. assignor. - correct answer✔✔B
, Stephanie's sale of rights she has under a contract with Runway Retail, Inc., to buy the retailer's
clothing overstock is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices. - correct answer✔✔B
Revenue & Sales Corporation and Software Solutions, Inc., enter into a contract for the design of
custom software for which Revenue & Sales agrees to pay $4,500. Software Solutions transfers
the right to payment under the contract to Creditline Company. Creditline is
a. an assignor.
b. an assignee.
c. an obligee.
d. a delegate. - correct answer✔✔B
Will owes Jenny $1,000. Brad owes Will $1,000. Will unconditionally assigns his rights to
Jenny. Will's right to the $1,000 is then
a. unchanged.
b. extinguished.
c. incidental.
d. assigned to a court. - correct answer✔✔B
Forrest makes and sells furniture. Forrest and Glenda enter into a contract for the delivery of
Forrest 's products to Glenda's Gear retail locations for which she agrees to pay the invoiced
price. Forrest transfers the right to payment under the contract to Haulers Trucks & Trailers. This
transfer is
