Understanding Business and Personal Law
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Chapter 12: Transfer of Contracts and Remedies for Breach
      
  1.Consideration is necessary for an assignment to be valid.  
  a.   TRUE  
  b.   FALSE  
      
  2.The principle of anticipatory breach does not apply  
  a.   when the loss suffered as a result of the breach can be remedied by the awarding of a monetary award.  
  b.   when one party notifies the other party that they will not go through with the contract before the time for performance.  
  c.   to promises to pay money at some future date.  
  d.   when the breach occurs before the time of performance was required.  
      
  3.The two chief equitable remedies are specific performance and mitigation of damages.  
  a.   TRUE  
  b.   FALSE  
      
  4.You must get permission of the other party to assign contract rights to a third person.  
  a.   TRUE  
  b.   FALSE  
      
  5.Acceptance of breach is an example of a remedy.  
  a.   TRUE  
  b.   FALSE  
      
  6.The transfer of a duty under a contract is called a(n)  
  a.   privity of contract.  
  b.   assignment.  
  c.   novation.  
  d.   delegation.  
      
  7.The remedy of specific performance can only be used when  
  a.   actual damages are greater than incidental damages.  
  b.   there is a mitigation of damages.  
  c.   a party is prevented from performing an act of some sort.  
  d.   money damages are not sufficient to give relief.  
      
  8.The transfer of a right under a contract is called a(n)  
  a.   privity of contract.  
  b.   assignment.  
  c.   novation.  
  d.   delegation.  
      
  9.A third-party beneficiary  
  a.   is a party to the contract and benefits from it.  
  b.   is not a party to the contract, but benefits from it.  
  c.   does not have standing to bring suit within the terms of the contract.  
  d.   can also be called a novation.  
      
  10.A novation is an agreement whereby an original party to a contract is replaced by a new party.  
  a.   TRUE  
  b.   FALSE  

 
 
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