Asked by Danielle Thompson on May 07, 2024
Verified
Which of the following is a true statement regarding an assignee's acceptance of assigned rights?
A) A creditor beneficiary must accept assignment of rights, but there is no requirement that a donee beneficiary do so.
B) A donee beneficiary must accept assignment of rights, but there is no requirement that a creditor beneficiary do so.
C) An assignee must agree to accept assigned rights, and there is a strict protocol for doing so.
D) An assignee may decline an assignment if he has not agreed to it and declines in a timely fashion after learning of it.
E) An assignee may only decline an assignment if a delegation of duties is also involved.
Assignee
A person or entity to whom rights or interests are transferred by another, the assignor.
Assigned Rights
Rights that are transferred from one party to another, often in the context of contracts.
Creditor Beneficiary
A third party that benefits from a contract between two other parties, where the promisor agrees to pay a debt that the promisee owes to the third party.
- Discern the prohibitions and approvals connected to the enforceability of contractual transfers.
Verified Answer
LS
Luke Sergei WarchockiMay 14, 2024
Final Answer :
D
Explanation :
An assignee has the option to decline an assignment if they have not previously agreed to accept it and if they decline it promptly upon becoming aware of the assignment. This provides flexibility and respects the autonomy of the potential assignee.
Learning Objectives
- Discern the prohibitions and approvals connected to the enforceability of contractual transfers.
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