Mr. Jans owned a small building with four offices upstairs and a restaurant on the main floor. Jans contracted with a company, Signs Limited, to construct a sign indicating the names of his tenants and their room numbers. The sign was created and installed by John Monet, an employee of Signs Limited. Signs Limited assigned $500 of the $700 contract price to Ms. Franz, its landlord, when she called and pressed for the rent. Ms. Franz gave notice of the assignment in writing to Jans. Read the following statements, independently of one another, and indicate which is the true statement.

A) If Signs Limited fails to pay Monet's salary, Monet is legally entitled to sue Jans for it because Monet did work for Jans.
B) Franz cannot enforce this assignment because the assignment was not in writing, and only assignments in writing will be enforced by the courts.
C) If the sign were not done properly, Jans should sue Monet for breach of contract because Monet, as the employee, did the work.
D) If the contract were completed satisfactorily, Franz could enforce the assignment, although it is a partial assignment.
E) If the assignment is not honoured by Jans, Franz' only recourse is to sue Monet, the employee who actually did the work.

Question

Jordan McFann · Accepted Answer

Final Answer : D, Explanation :  Franz can enforce the assignment against Jans if the contract was completed satisfactorily, even though it is a partial assignment, because the assignment was notified to Jans in writing, and he is now aware that a portion of the payment is due to Franz. The legality of the assignment does not depend on it being for the full amount, but on proper notification and agreement terms.

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