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MisconceptionObserved in bank

Cap Does Not Travel

This trap appears as a wrong-answer choice in 1 active question. Spotting how it is built is the repair: read each example's “why it's attractive” before the “why it's wrong.”

Subject distribution

  • Contracts1

Example wrong choices

  • 19386_scripture_audio_cap · CONTRACTS · Choice BHannah may recover only if Peter first assigns her the audio-service contract.

    Why it's attractive

    Assignment sounds like a legitimate way for a nonparty to receive contract rights. The breaker is that the stem already supplies third-party-beneficiary status, so assignment answers the wrong route.

    Why it's wrong

    Assignment is a real contract-rights route, but it answers a different route from the one in the stem.

    Spot it next time

    Say: 'TPB route is already in the stem; assignment is not required.'

  • 19386_scripture_audio_cap · CONTRACTS · Choice CHannah cannot recover anything because beneficiaries can never enforce audio-service contracts.

    Why it's attractive

    The privity reflex makes it feel safe to say an outsider gets nothing. The breaker is the categorical word 'never,' because intended beneficiaries are not categorically barred from enforcing service contracts.

    Why it's wrong

    The word 'never' overstates the rule by denying all intended-beneficiary enforcement of audio-service contracts.

    Spot it next time

    Circle 'never' and ask whether the stem directly names the beneficiary.

  • 19386_scripture_audio_cap · CONTRACTS · Choice DHannah may recover the full $26,000 because she did not sign the liability cap.

    Why it's attractive

    Nonparty status makes the liability cap feel like a private bargain Hannah never accepted. The breaker is the package rule: Hannah's enforcement right and the cap come from the same contract.

    Why it's wrong

    The answer reverses the package rule by letting Hannah use the contract for the right while escaping the same contract's cap.

    Spot it next time

    Ask: 'What document creates the right, and what document creates the limit?'

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