Asked by Britney Xiong on Jul 16, 2024
Verified
Beau borrows $15,000 from Credit Center to buy a car. The lender assigns the right to receive the loan payments to Debt Collections Inc. If Beau does not pay the debt, the assignee can
A) extinguish the contract rights of the assignor.
B) demand performance of the deal from any of the original parties.
C) enforce the payment in court.
D) none of the choices.
Assignee
A party to whom a right or property is legally transferred.
Loan Payments
Regular payments made towards settling a loan, typically consisting of both principal and interest components.
- Master the rights and duties of assignors, assignees, obligors, and obligees in the scenario of assigned contracts.
- Familiarize oneself with the legal solutions at the disposal of parties upon a breach of contract by one participant or when a third party beneficiary's privileges are compromised.
Verified Answer
TK
Taylor KindleJul 19, 2024
Final Answer :
C
Explanation :
When a lender assigns the right to receive loan payments to another entity, the assignee (in this case, Debt Collections Inc.) gains the right to enforce the payment in court if the borrower fails to pay the debt. This is a standard practice in debt collection and does not involve extinguishing contract rights of the assignor or demanding performance from any original parties outside of the agreed terms.
Learning Objectives
- Master the rights and duties of assignors, assignees, obligors, and obligees in the scenario of assigned contracts.
- Familiarize oneself with the legal solutions at the disposal of parties upon a breach of contract by one participant or when a third party beneficiary's privileges are compromised.