With Regard to the Law Governing Privity of Contract and Assignment

question 1

Multiple Choice

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

• A) The privity of contract rule states that only the parties to the contract have rights and obligations under the contract.
• B) Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract.
• C) A statutory assignment is easier to enforce than an equitable assignment.
• D) A party to a contract for services can assign both his contractual obligations and his contractual rights.
• E) 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.

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Definitions:

Standard Error

A measure of the variability of a statistic from sample to sample, often used to quantify the accuracy of a sample mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, representing how spread out the values are from the mean.

Sample Means

The average values calculated from samples drawn from a population; used in inferential statistics as estimates of the population mean.

Population Mean

The average value of a characteristic in the entire population being studied.