Assignment and Delegation in Contracts: Rights and Duties Transfer

Question 1

Which of the following is NOT a recognized method of assigning a contract?

Accepted Answer

Assignment by delegation

Answer

Assignment by agreement

Answer

Assignment by operation of law

Answer

Assignment by novation

Question 2

Delegation of duties differs from assignment of rights primarily in that:

Accepted Answer

The delegate is liable to the delegating party for performance, while the assignee is not.

Answer

Delegation creates a new contractual relationship, while assignment does not.

Answer

Delegation involves the transfer of future duties, while assignment involves the transfer of existing rights.

Answer

Only certain duties can be delegated, while all rights can be assigned.

Question 3

A primary benefit of assigning rights is that it:

Accepted Answer

Allows the assignor to transfer the risk of non-performance.

Answer

Gives the assignee a security interest in the assigned rights.

Answer

Relieves the assignor from any further liability under the contract.

Answer

Guarantees that the assignee will fulfill the assigned obligations.

Question 4

What is the main purpose of a novation agreement?

Accepted Answer

To replace an existing party to a contract with a new party.

Answer

To modify the terms of an existing contract.

Answer

To terminate an existing contract.

Answer

To create a new contract.

Question 5

In the context of contract delegation, which statement holds true?

Accepted Answer

The delegator remains fully responsible despite transferring performance duties.

Answer

The delegate assumes exclusive responsibility for performance of the duties.

Answer

The obligor must explicitly consent to the delegation.

Answer

The assignment can be revoked by the assignee at will.

Question 6

Which duty is inherently non-delegable?

Accepted Answer

Duty to perform a personal obligation

Answer

Right to payment

Answer

Right to inspect performance

Answer

Right to assign the duty

Question 7

Post-assignment, which element does the assignee typically not acquire?

Accepted Answer

Personal liability for contract performance

Answer

Privity of contract with the obligor

Answer

Defenses against the obligor

Answer

Rights to remedies for breach of contract

Question 8

In contract law, delegation refers to:

Accepted Answer

Transferring contractual duties to a third party

Answer

Granting the delegate the right to exercise the delegator's contractual rights

Answer

Relieving the delegator of all contractual obligations

Question 9

Which condition is NOT essential for a valid assignment of rights under a contract?

Accepted Answer

The other party's consent is obtained.

Answer

The assignment is documented in writing.

Answer

The assignment involves a specific and clear right.

Answer

The assignment is supported by valuable consideration.

Question 10

In contract assignment, who relinquishes their rights and obligations?

Accepted Answer

Assignor

Answer

Assignee

Answer

Delegator

Answer

Delegate

Question 11

Which of the following is NOT a potential risk associated with duty delegation?

Accepted Answer

Obligation of the delegate to become a joint obligor

Answer

Subpar performance by the delegate

Answer

Continued liability of the delegator

Answer

Delegate's ability to assert defenses unavailable to the delegator

Question 12

In duty delegation, what is the legal relationship between the delegator and the delegate?

Accepted Answer

Principal and agent

Answer

Assignor and assignee

Answer

Master and servant

Answer

Debtor and creditor

Question 13

After a contract assignment, what happens to the assignor's duties?

Accepted Answer

They remain with the assignor unless specifically released.

Answer

They are automatically extinguished.

Answer

They are automatically transferred to the assignee.

Answer

They become void from the moment of assignment.

Question 14

Which of the following is NOT a valid defense to an action for breach of contract by an assignee?

Accepted Answer

Breach of duty by the assignor

Answer

Lack of consideration

Answer

Illegality of the original contract

Answer

Fraud in the inducement of the assignment

Question 15

Which of the following is NOT an exception to the rule of privity of contract in the context of assignment of rights?

Accepted Answer

Delegation of duties

Answer

Novation

Answer

Equitable assignment

Question 16

In equitable assignment of contractual rights, which element is crucial for its validity?

Accepted Answer

Notification of assignment to the obligor

Answer

Privity of contract between assignor and assignee

Answer

Written agreement signed by the assignor

Answer

Consideration from assignee to assignor

Question 17

Which of the following is **NOT** a requirement for a valid delegation of duties in a contract?

Accepted Answer

Payment or other consideration given to the delegate.

Answer

The original party's agreement to the delegation.

Answer

A clear statement of the specific duties being delegated.

Answer

The delegate's acceptance of the assigned duties.

Question 18

What is the primary purpose of delegation in contract law?

Accepted Answer

To transfer duties and liabilities to another party

Answer

To modify the terms of the contract

Answer

To transfer rights and liabilities to another party

Question 19

Which of the following statements about delegation of duties is INCORRECT?

Accepted Answer

The delegating party is absolved of all liability for the delegated duties.

Answer

The delegatee assumes primary liability for the delegated duties.

Answer

Delegation must generally be express, not implied.

Question 20

What is the impact of an assignment of a contract on the rights of the assignor?

Accepted Answer

The assignor's rights are transferred to the assignee.

Answer

The assignor's rights are terminated.

Answer

The assignor's rights are suspended.

Question 21

What is the fundamental distinction between assignment and delegation?

Accepted Answer

Assignment transfers rights, while delegation transfers duties.

Answer

Assignment is always bilateral, while delegation can be unilateral.

Answer

Assignment is irrevocable, while delegation is revocable.

Question 22

What is the legal consequence of assigning a contract on the assignor's liability?

Accepted Answer

The assignor remains liable for breaches that occurred prior to the assignment.

Answer

The assignor becomes jointly liable with the assignee for any subsequent breaches.

Answer

The assignor is completely absolved of all liability for the assigned contract.

Question 23

Which of the following is NOT required for a valid assignment of a contract right in the United States?

Accepted Answer

Acceptance by the obligor

Answer

Proper identification of the right being assigned

Answer

Intent to assign the right

Answer

Existence of a valid contract

Question 24

What key distinction separates delegation from assignment in contract law?

Accepted Answer

Delegation transfers a duty to perform, while assignment transfers a right to receive performance.

Answer

Delegation always releases the delegator from liability, while assignment does not.

Answer

Delegation must be in writing, while assignment can be oral.

Answer

Delegation requires the obligor's consent, while assignment does not.

Question 25

Which duty is generally NOT delegable under contract law in the United States?

Accepted Answer

A renowned surgeon's duty to perform a complex surgery.

Answer

A duty to pay a specific sum of money to a creditor.

Answer

A duty to mow a lawn for a homeowner.

Answer

A duty to deliver a generic product, readily available in the market.

Question 26

What is a primary benefit of delegation for the delegator?

Accepted Answer

It allows for efficient task allocation by enabling the delegator to focus on their areas of expertise.

Answer

It automatically alters the original contract terms to reflect the delegation.

Answer

It always requires the obligee's consent for the delegation to be effective.

Answer

It completely releases the delegator from all liability related to the delegated duty.

Question 27

What is the primary effect of a novation on a contract?

Accepted Answer

It discharges the original contract and creates a new one with at least one new party.

Answer

It releases one party from their obligations while keeping the other party bound by the original terms.

Answer

It merely modifies specific terms of the original contract without changing the parties involved.

Answer

It is simply another term for assignment, where one party transfers their rights to another.

Question 28

Which of the following scenarios best exemplifies the legal consequence of a valid novation?

Accepted Answer

A debtor, creditor, and a third party agree that the third party will assume the debt, releasing the original debtor from liability.

Answer

A musician assigns the right to receive royalties from their song to their record label.

Answer

A homeowner hires a contractor to renovate their kitchen, and the contractor delegates the plumbing work to a subcontractor.

Answer

A landlord agrees to let the tenant out of their lease early, without finding a replacement tenant.

Question 29

A contract explicitly states that assignment is prohibited, yet the assignor assigns the contract without obtaining consent. What is the probable outcome?

Accepted Answer

The assignment may be deemed voidable at the non-assigning party's discretion.

Answer

The assignor is in breach of contract, but the assignment remains legally binding.

Answer

The assignment is automatically void.

Question 30

In which scenario is delegation of duties typically not permissible?

Accepted Answer

When a contract involves a highly personalized service, such as a portrait painting by a renowned artist.

Answer

When a contract involves the delivery of goods.

Answer

When a contract involves the cleaning of a commercial building.

Question 31

In a delegation scenario, the party who originally agreed to the contract is referred to as the:

Accepted Answer

Delegator.

Answer

Assignee.

Answer

Assignor.

Answer

Delegate.

Question 32

A contract stipulates that 'assignment is permitted only with the written consent of the other party.' Which scenario is most likely to be compliant with this clause?

Accepted Answer

The assignor aims to transfer the contract to a subsidiary company engaged in similar business activities.

Answer

The assignor intends to assign the contract to a direct competitor.

Answer

The assignor seeks to assign the contract to an unrelated third party.

Question 33

Which statement BEST describes the liability of the delegator in a delegation of duties?

Accepted Answer

The delegator remains responsible for the fulfillment of the delegated duty unless the obligee explicitly agrees to release the delegator from liability.

Answer

Delegation absolves the delegator from any liability related to the delegated duty.

Question 34

A contract states that 'assignment is permitted, but the assignee will not be entitled to any rights or benefits under the contract that are personal to the assignor.' Which of the following rights is MOST likely to be considered personal to the assignor?

Accepted Answer

The exclusive right to receive a personalized service from the other party.

Answer

The right to terminate the contract for breach.

Answer

The right to receive payment under the contract.

Question 35

A contract for the sale of a unique painting is assigned to a third party. What is the legal effect of this assignment on the original seller's obligations under the contract?

Accepted Answer

The original seller continues to be legally bound to fulfill the contract, unless the buyer explicitly releases them from liability.

Answer

The original seller is completely absolved of any and all obligations under the contract.

Question 36

A contract for the construction of a building is delegated to a subcontractor. Which of the following is MOST likely to constitute a valid defense for the original contractor in the event that the subcontractor fails to fulfill the contract obligations?

Accepted Answer

The subcontractor lacked the necessary qualifications or experience to undertake the construction work.

Answer

The original contractor did not receive payment for the delegation.

Answer

The subcontractor refused to be bound by the terms of the original contract.

Question 37

A contract for the sale of a one-of-a-kind artwork expressly prohibits assignment without the seller's consent. The buyer attempts to assign the contract to a museum without obtaining the seller's consent. What is the likely outcome?

Accepted Answer

The assignment is deemed invalid due to the contractual prohibition.

Answer

The assignment is valid because the buyer has an inherent right to transfer the contract.

Answer

The assignment is valid because the museum is a reputable institution.

Question 38

An accountant agrees to provide tax preparation services for a client. The accountant subsequently delegates this task to another accountant. The client is dissatisfied with the delegated accountant's work. What are the client's legal options?

Accepted Answer

The client can pursue legal action against the original accountant for breach of contract.

Answer

The client can only pursue legal action against the delegated accountant for breach of contract.

Answer

The client must first pursue legal action against the delegated accountant before proceeding against the original accountant.

Question 39

A contract for the sale of goods requires the seller to deliver the goods to the buyer's warehouse.  The buyer assigns the contract to another party.  Which of the following is TRUE regarding the delivery obligation?

Accepted Answer

The seller is still obligated to deliver the goods to the buyer's warehouse.

Answer

The seller is obligated to deliver the goods to the assignee's warehouse.

Answer

The seller is relieved of the delivery obligation because the contract was assigned.

Question 40

Which of the following is NOT a general requirement for a valid assignment?

Accepted Answer

The assignor must notify the obligor of the assignment.

Answer

There must be a valid existing contract.

Answer

The right assigned must be capable of being assigned.

Question 41

A contract requires a painter to create a portrait of a specific person.  The painter decides to delegate the duty to another artist.  What is the likely outcome?

Accepted Answer

The delegation is likely invalid because it involves a personal service contract.

Answer

The delegation is valid because the original painter remains liable for the work.

Answer

The delegation is valid because it does not materially increase the obligor's risk.

Question 42

A contract for the sale of a business includes a covenant not to compete.  The buyer assigns the contract to a new owner.  Which of the following is TRUE regarding the covenant not to compete?

Accepted Answer

The covenant not to compete remains binding on the original seller.

Answer

The covenant not to compete is automatically extinguished upon assignment.

Answer

The covenant not to compete is only binding on the new owner.

Question 43

A construction company assigns its right to receive payment under a contract to a bank.  The bank then notifies the other party to the contract of the assignment.  What effect does this notification have?

Accepted Answer

The obligor must now make payment to the assignee (bank).

Answer

The notification is unnecessary, as the obligor is still obligated to pay the assignor.

Answer

The notification is a formality but does not change the obligor's obligations.

Question 44

A contract requires the delivery of a specific type of software.  The seller delegates the duty to manufacture the software to a third-party company.  The third-party company delivers defective software.  Which of the following is MOST LIKELY TRUE?

Accepted Answer

The buyer can sue both the seller and the third-party company for breach of contract.

Answer

The buyer must first sue the seller before suing the third-party company.

Answer

The buyer can only sue the third-party company for breach of contract.

Question 45

Which of the following is NOT an essential element of a valid assignment?

Accepted Answer

Consideration

Answer

Mutual agreement

Answer

Delivery of the assignment

Answer

Writing

Question 46

When an assignor delegates a contractual duty to a third party, who is primarily liable for the performance of that duty?

Accepted Answer

Assignor

Answer

Assignee

Answer

None of the above

Answer

Delegated third party

Question 47

Which of the following is a potential consequence of an invalid assignment?

Accepted Answer

Breach of contract

Answer

Negligence

Answer

Trespass

Answer

Fraud