With Regard to the Law Governing Privity of Contract and Assignment

question 62

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:

Developmentally Disabled

Refers to individuals who experience significant limitations in intellectual functioning and adaptive behavior, which manifest before the age of 18.

Diagnosable Mental Disorder

A condition with psychological or behavioral patterns that impact multiple areas of life and meet specific criteria defined by the DSM-5.

Chemical

A substance with a distinct molecular composition that is produced by or used in a chemical process.

Inhibitions

Psychological or emotional barriers that restrain or prevent certain actions, thoughts, or feelings, often based on social norms or personal fears.