Asked by Duncan Jackman on May 31, 2024
Verified
Elin owes Floyd $10,000. Floyd assigns the claim to Gary. Gary does not notify Elin of the assignment. Later, Floyd assigns the same claim to Holly. Holly immediately notifies Elin of the assignment. Holly has priority to payment in
A) all states.
B) states that follow the English rule.
C) no state.
D) most states.
English Rule
A legal principle stating that the losing party in a lawsuit must pay the legal costs of the winning party.
Assignment Notice
A formal notification that an assignment, often of a contract or legal right, has been made to another party.
- Grasp the rule of priority in assignments and its practical implications.
Verified Answer
BW
Brooke WaszakMay 31, 2024
Final Answer :
B
Explanation :
In states that follow the English rule, the first assignee to notify the debtor of the assignment has priority. Since Holly was the first to notify Elin, she would have priority in these jurisdictions.
Learning Objectives
- Grasp the rule of priority in assignments and its practical implications.