#1
Under what circumstance can a third party acquire rights under a contract?
When the contract is void
When the third party pays a fee
When the contracting parties agree to it
When the third party is a family member
#2
In which scenario is the doctrine of 'privity of contract' most likely to limit the rights of third parties?
When the contract is breached
When the contract is silent on third-party rights
When the third party is a family member
When the third party is explicitly mentioned in the contract
#3
When can a third-party beneficiary enforce a contract if the contracting parties fail to perform their obligations?
Immediately upon the breach of contract
Only if the third party expressly demands enforcement
After a reasonable time for performance has passed
Third-party beneficiaries cannot enforce contracts in case of non-performance
#4
What is the primary purpose of a third-party beneficiary contract?
To create obligations between the contracting parties
To confer benefits upon a third party
To provide remedies for contract breaches
To exclude third parties from any involvement
#5
In the context of contracts, what does 'privity of contract' refer to?
The right of a third party to enforce a contract
The relationship between the contracting parties
The consideration exchanged in the contract
The termination of a contract
#6
Which doctrine allows a third party to enforce a contract even if they are not a party to it?
Doctrine of Subrogation
Doctrine of Privity
Doctrine of Frustration
Doctrine of Promissory Estoppel
#7
What is the difference between an assignment and a delegation in contract law?
An assignment transfers contractual rights, while a delegation transfers contractual duties
An assignment transfers contractual duties, while a delegation transfers contractual rights
An assignment and a delegation are the same thing
Neither an assignment nor a delegation is recognized in contract law
#8
What is the term for a situation where a third party benefits from a contract unintentionally, without being specifically named?
Donee beneficiary
Creditor beneficiary
Incidental beneficiary
Intended beneficiary
#9
What is the difference between an intended beneficiary and an incidental beneficiary in contract law?
An intended beneficiary is specifically named in the contract, while an incidental beneficiary is not.
An intended beneficiary is unintentionally included, while an incidental beneficiary is deliberately named.
An intended beneficiary has no rights under the contract, while an incidental beneficiary does.
An intended beneficiary has no relation to the contracting parties, while an incidental beneficiary does.
#10
What is the effect of the death of a party involved in a contract on third-party rights?
Third-party rights are automatically terminated.
Third-party rights continue to exist and can be enforced.
Third-party rights are transferred to the deceased party's estate.
The death of a party has no impact on third-party rights.
#11
What is the term for a situation where a third party is specifically identified and intended to benefit from a contract?
Incidental beneficiary
Donee beneficiary
Creditor beneficiary
Intended beneficiary
#12
Which legal concept prevents a party from denying the existence of a contract when a third party has relied on that contract?
Estoppel
Duress
Misrepresentation
Undue Influence
#13
Under what circumstance can a third party sue for damages in a contract to which they are not a party?
If they have a close relationship with one of the contracting parties
If they have a financial interest in the subject matter of the contract
If they are a friend of the contracting parties
Third parties cannot sue for damages in such cases
#14
What is the effect of the novation of a contract involving a third party?
The third party's rights and obligations are extinguished
The third party becomes a joint promisor with the original parties
The third party's rights are enhanced
The third party becomes the sole promisor in the contract
#15
Under the Uniform Commercial Code (UCC), when can a third-party beneficiary enforce a contract?
Only if they are explicitly mentioned in the contract
Only if the contracting parties agree to it
If the contract expressly provides for enforcement by the third party
Third-party beneficiaries cannot enforce contracts under the UCC
#16
What is the concept of 'equitable estoppel' in relation to third-party rights in contracts?
A third party can enforce a contract if it is fair and just to do so.
A third party can enforce a contract only if they have a legal interest in the subject matter.
A third party can enforce a contract if they have a close relationship with one of the contracting parties.
A third party can enforce a contract only if the contracting parties expressly agree.