FYLSX - Baby Bar Third Party Contract Rights Flashcards
6 cards from real FYLSX practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 FYLSX - Baby Bar Third Party Contract Rights flashcards as text
Assignment of a contract right transfers the assignor's rights to the assignee. Which of the following is generally NOT assignable?
Answer: A right that would materially change the obligor's duty
Rights that would materially alter the obligor's duty or risk — such as personal services — are not freely assignable without the obligor's consent.
Alice assigns her right to receive $5,000 from Bob to Carol. Bob pays Alice, not knowing of the assignment. Which statement is correct?
Answer: Bob is discharged because he paid before receiving notice of the assignment
An obligor who pays the assignor without notice of the assignment is discharged; the assignee's remedy is against the assignor.
Delegation transfers the delegator's contractual duties to a delegate. Which of the following duties CANNOT be delegated?
Answer: The duty to paint a portrait based on personal artistic skill
Duties requiring unique personal skill or involving personal trust and confidence — such as painting a portrait — cannot be delegated without the other party's consent.
When a delegator delegates duties to a delegate, the delegator:
Answer: Remains secondarily liable unless there is a novation releasing the delegator
Delegation does not release the delegator from liability; the delegator remains secondarily liable unless the other party agrees to a novation substituting the delegate.
An anti-assignment clause in a contract generally:
Answer: Bars assignment but the assignee may still have a claim for breach of contract damages
Under the UCC and modern common law, an anti-assignment clause may bar the assignment but does not automatically void it; the breaching party may owe damages rather than the assignment being nullified.
On the FYLSX, which best describes a novation in the context of delegation?
Answer: A three-party agreement where the obligee releases the delegator and substitutes the delegate as the new obligor
A novation requires all three parties' agreement: the original obligor (delegator) is released and the delegate becomes the new, sole obligor.