Asked by Shaniqua Esdaille on May 07, 2024
Verified
Jorge and Delinda decide to contract for bottled water. Delinda assigns her right to receive the proceeds of the bottled water contract to her friend Melody. When does an assignment become effective?
A) It would not be effective as rights to payments cannot be assigned.
B) When Melody receives notice she is receiving the payment rights.
C) Immediately upon the assignment.
D) After a reasonable delay to allow time for the obligor to object.
E) Five business days after the assignment being made.
Assignment Effective
The point in time when a contractual assignment of rights or interests from one party to another becomes valid and enforceable.
Obligor
A person or entity legally obligated to provide a payment or service to another under the terms of a contract.
- Assess the validity and repercussions of assigning contracts despite antiassignment clauses.
Verified Answer
YW
Yvonne WilsonMay 10, 2024
Final Answer :
C
Explanation :
An assignment becomes effective immediately upon the assignment, regardless of whether notice has been given to the obligor or any other party. This means that the rights are transferred to the assignee at the moment the assignment is made.
Learning Objectives
- Assess the validity and repercussions of assigning contracts despite antiassignment clauses.