Which of the Following Is False with Regard to Privity

question 43

Multiple Choice

Which of the following is false with regard to privity of contract and assignments?

• A)Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract.
• B)The rules governing negotiation (an assignment of a negotiable instrument such as a cheque)differ from those governing regular assignments; the assignee may take more than the assignor was entitled to receive.
• C)A statutory assignment is harder to enforce in court than an equitable assignment.
• D)There is case law confirming the proposition that an employee can have the benefit of an exemption clause in the employer's contract with the customer.
• E)A computer programmer who signs a contract for services can assign his contractual rights but not his contractual obligations if the contract is silent on the matter of assignments.

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Definitions:

Company Officers

Executives appointed by the board of directors responsible for managing the day-to-day operations and administration of a corporation.

Public Corporations

Entities that are owned by public shareholders. These corporations have shares that are listed and traded on public stock exchanges.

International Financial Reporting Standards

A set of global accounting standards developed by the International Accounting Standards Board (IASB) that outlines how financial transactions and other events should be reported in financial statements.

Private Corporations

Businesses owned by non-governmental organizations or a relatively small number of shareholders or company members which do not offer or trade their company stock to the general public on the stock market.