With Regard to the Law Governing Privity of Contract and Assignment

question 92

Multiple Choice

With regard to the law governing privity of contract and assignment, which of the following is false?

• A) A statutory assignment is easier to enforce than an equitable assignment.
• B) A party to a contract for services can assign both his contractual obligations and his contractual rights.
• C) Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another.
• D) Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract.
• E) An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer.