1. Assume that Jack and Hal and Sophia enter into an agreement for the sale of the restaurant. Hal and Sophia get a loan from the Fourth National Bank to pay for it. When their first payment is due, however, they get a letter from Bank of North America stating that they bought the loan from Fourth National Bank. Which of the following is true?

1. Fourth National Bank made an assignment.
2. Fourth National Bank made a delegation.
3. Bank of North America became an intended third party beneficiary.
4. Bank of North America became an incidental third party beneficiary.

The correct answer is:
SelectabcdItem 1

2.  Assume that Jack and Hal and Sophia enter into an agreement for the sale of the restaurant. Hal and Sophia get a loan from the Fourth National Bank to pay for it. When their first payment is due, however, they get a letter from Bank of North America stating that they bought the loan from Fourth National Bank. If Hal and Sophia were to default on the loan, who would have rights under the contract to sue Hal and Sophia for non-payment?

1. Fourth National Bank only.
2. Bank of North America only.
3. Fourth National Bank or Bank of North America, but not both together.
4. Bank of North America and Fourth National Bank acting jointly and severally.

The correct answer is:
SelectabcdItem 2

3.  Assume that Jack and Hal and Sophia enter into an agreement for the sale of the restaurant. Part of the contract calls for Jack to clean the outside of the restaurant within fifteen days of the closing. Instead of doing it himself, Jack hires Spray-Wash, a cleaning company to do it for him. Which of the following is true?

1. Jack has made an assignment.
2. Jack has made a delegation.
3. Hal and Sophia became intended third party beneficiaries.
4. Hal and Sophia became incidental third party beneficiaries.

The correct answer is:
SelectabcdItem 3

4.  Assume that Jack and Hal and Sophia enter into an agreement for the sale of the restaurant. Part of the contract calls for Jack to clean the outside of the restaurant within fifteen days of the closing. Instead of doing it himself, Jack hires Spray-Wash, a cleaning company to do it for him. Which of the following is true?

1. Hal and Sophia can refuse the service from Spray-Wash for any reason because they are under no obligation to accept a delegation.
2. Hal and Sophia can refuse service from Spray-Wash because their expectations are materially altered.
3. If Spray-Wash does not do the job, Hal and Sophia may not recover from Jack, but only from Spray-Wash.
4. If Spray-Wash does not do the job, Hal and Sophia can recover from both Spray-Wash and Jack.