With Regard to the Law Governing Privity of Contract and Assignment

question 27

Multiple Choice

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

• A) A party to a contract for services can assign both his contractual obligations and his contractual rights.
• B) 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.
• C) Novation refers to the modifications of the privity of contract rule since it allows a stranger to the contract to receive benefits from the contract.
• D) Assignments are modifications of the privity of contract rule since they allow ending the original contract and entering into a new contract with changes in terms, such as substituting one party for another.
• E) A statutory assignment is more difficult to enforce than an equitable assignment.

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Definitions:

Ovule

The structure in seed plants that develops into a seed after fertilization, containing the female gametophyte.

Cycads

Ancient group of seed plants characterized by a stout and woody trunk with a crown of large, hard and stiff, evergreen leaves.

Tropics

A region of the Earth surrounding the Equator, characterized by a warm climate with little seasonal temperature variation.

Flowering Plants

Angiosperms, or flowering plants, are plants that produce flowers as their reproductive structures, bearing seeds within fruits.