Asked by Kiasha Trammell on May 13, 2024

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Which statement is true with respect to whether a contract may be assigned even in the presence of an antiassignment clause?

A) Assignments made by operation of law may be assigned, but no other assignments may be made in the presence of an antiassignment clause.
B) Assignments for the right to receive monetary payments may be assigned, but no other assignments may be made in the presence of an antiassignment clause.
C) Assignments made by operation of law, assignments for the right to receive monetary payments, and assignments for the right to receive damages for a breach of contract to sell goods or services may be assigned even in the presence of an antiassignment clause.
D) No contractual rights or duties may be assigned in the presence of an antiassignment clause.
E) Antiassignment clauses are void as against public policy and have no effect on the right of assignment.

Antiassignment Clause

A provision in a contract that restricts the transfer of rights or obligations to another party without prior approval.

Operation of Law

Changes in rights or duties that take place automatically under the law, without any action by the parties involved.

Monetary Payments

Transactions involving the transfer of money from one party to another as a form of compensation or settlement.

  • Evaluate the enforceability and effects of contract assignments in the presence of clauses prohibiting assignment.
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CD
Claire DarvellMay 14, 2024
Final Answer :
C
Explanation :
Assignments made by operation of law, for the right to receive monetary payments, and for the right to receive damages for a breach of contract to sell goods or services can often be assigned despite an antiassignment clause. This is because such assignments are generally considered exceptions to the enforceability of antiassignment clauses, recognizing the practical need to allow for certain types of assignments to occur for reasons of public policy, efficiency, or the protection of the assignee's rights.