The substitution for an old contract with a new one that eitherreplaces an existing obligation with a new obligation or replacesan original party with a new party is known as a(n)_____________________.

third-party beneficiary

delegation of duties

cause of action

claim

assignment

novation Question 37 Clark purchased a life insurance policy on himself and made hisson, Russ, the beneficiary. Unfortunately, while Clark was taking avacation with his wife, he was involved in a car accident andpassed away. Russ did not find Clark's insurance policy until sixmonths after Clark's death. Russ immediately contacted theinsurance company to claim the money. The insurance company refusedto pay him, claiming that he failed to notify it of Clark's deathwithin three months of his death as required by the policy. Russclaimed that he was not bound to the time limitations because eventhough he knew his dad had insurance, he did not agree to thatlimitation and was not a party to the contract. The insurance company is a(n) __________________________. assignor incidental beneficiary delegatee assignee intended creditor beneficiary delegator intended donee beneficiary promisor

Question 39 Pablo agreed to paint Juan's house for $1,000. Two days beforePablo was scheduled to paint the house, he broke a leg and wouldnot be able to climb the ladder. He contracted Salvador to paintthe house. When Salvador went to paint the house it started tostorm. He could not paint if until the next day. Determine if the following statement is true or false. Salvador will need to perform on the contract once the rainstops.       [ Choose ]           True           False       Pablo is the delegatee.       [ Choose ]           True           False       Pablo may not delegate the painting because it involves apersonal skill.       [ Choose ]           True           False       The contract is disharged because of impossibility Question 33 Clark purchased a life insurance policy on himself and made hisson, Russ, the beneficiary. Unfortunately, while Clark was taking avacation with his wife, he was involved in a car accident andpassed away. Russ did not find Clark's insurance policy until sixmonths after Clark's death. Russ immediately contacted theinsurance company to claim the money. The insurance company refusedto pay him, claiming that he failed to notify it of Clark's deathwithin three months of his death as required by the policy. Russclaimed that he was not bound to the time limitations because eventhough he knew his dad had insurance, he did not agree to thatlimitation and was not a party to the contract. Clark is a(n) ______________________. assignee intended creditor beneficiary promisor intended donee beneficiary promisee delegatee assignor incidental beneficiary Question 32 Shelley assigned Frankie her rights to payment and was givenconsideration for that assignment. Shelley gave an implied warrantythat the assignment was valid. True False Question 31 Mona Lisa commissioned Leonardo to paint her portrait for$3,000. The day before Leonardo was to paint her portrait, he camedown with a sickness. He contacted his good friend, Michelangelo,to paint the portrait. Michelangelo is a(n)_____________________________. intended beneficiary incidential beneficiary delegator assignor delegatee assignee