Painted House

question 127

Multiple Choice

Painted House.Billy had a contract to paint Jan's house for $800 including the duty to clean up any debris.The contract between Billy and Jan did not contain an anti-assignment clause.Billy,who was very busy,assigned the contract,including the right to payment and the duty to paint,to Richard who was interested in making some extra money and had experience painting.Billy did not tell Jan about the assignment because he did not want any trouble nor did Richard mention the assignment to her.In fact,Richard never met Jan because he painted while she was at work.After Richard did a good job painting the house,Jan sent a check to Billy for $800.Billy needed the money to pay some bills,so he spent it.He thought he would have money coming in with which to pay Richard,but that did not happen.Richard asked Jan for $800 when it was not forthcoming from Billy.Jan refused.Richard said that he was going to sue her and Billy.Jan called Billy and told him that he had no right to assign the contract.Another problem involved disposal of debris.Although Richard was a good,competent painter,he forgot and left some old paint cans at Jan's house.Jan demanded that Billy come and properly dispose of the paint cans because they could not simply be put in the trash.Billy refused and told her that she would have to get Richard to dispose of the paint cans because that was his responsibility.Which of the following is true regarding Billy's claim that he had no duty to pick up the paint cans?

• A)Billy is correct because he had validly delegated that duty to Richard.
• B)Billy is incorrect because the job was a personal service,and he had no right to assign either rights or duties under the contract.
• C)Billy is incorrect but only because the job was for under $1,000.
• D)Billy is correct only because Richard properly painted the house and was,therefore,responsible for ancillaries.If Richard had improperly painted the house,Billy would have had remaining duties.
• E)Billy is incorrect because his delegation did not affect his obligation to Jan.

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Definitions:

Foreign Corporations

Entities incorporated under the laws of a foreign country that do business in another country.

Alien Corporations

Companies that are registered and operating in a country different from where they were originally incorporated.

Private Corporations

Companies that do not offer or trade their company stock (shares) to the general public on the stock market but rather the stock is offered, owned, and traded or exchanged privately.

Closely Held

A company that has a limited number of shareholders and whose stocks are not publicly traded.