3. Contract Law

Third Party Rights — Quiz

Test your understanding of third party rights with 5 practice questions.

Practice Questions

Question 1

Which legal principle dictates that only parties directly involved in a contract have the right to enforce its terms or be held liable under it?

Question 2

Under what circumstances can a third party, who is not a direct party to a contract, still enforce rights under that contract?

Question 3

What is the legal term for the transfer of contractual rights from one party to another?

Question 4

Which of the following best describes the effect of a valid delegation of duties in a contract?

Question 5

A contract between a homeowner and a construction company specifies that the company will build a house for the homeowner. The homeowner then sells the house to a buyer before construction is complete, and the contract states that the construction company will now build the house for the buyer. What legal concept is at play here?