With Regard to the Law Governing Privity of Contract and Assignment

question 116

Multiple Choice

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

• 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) Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract.
• D) A statutory assignment is easier to enforce than an equitable assignment.
• 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:

Veto

The power to unilaterally stop an official action, especially the enactment of legislation.

Enact

To make into law by official decree.

Congress

A national legislative body, primarily responsible for making laws.

Marbury v. Madison

A landmark case in 1803 where the U.S. Supreme Court first declared the power of judicial review, establishing the basis for the judiciary's ability to declare laws unconstitutional.