Asked by Jessie Schneider on Jun 09, 2024

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With regard to the law governing privity of contract and assignment, which of the following is false?

A) A statutory assignment is easier to enforce than an equitable assignment.
B) A party to a contract for services can assign both his contractual obligations and his contractual rights.
C) Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another.
D) Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract.
E) An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer.

Privity of Contract

The rule that only the individuals or entities who are parties to a contract can have rights or duties imposed by the contract itself.

Statutory Assignment

The transfer of rights or benefits from one party to another in accordance with specific statutes or laws.

Equitable Assignment

The transfer of rights or benefits from one party to another, recognized by equity and intended to be binding, often used in absence of formal legal assignment.

  • Grasp the rules governing privity of contract and assignment, including statutory and equitable assignments.
  • Understand the principle of privity of contract and its exceptions, including the role of novation.
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ML
Malissa LizetJun 11, 2024
Final Answer :
B
Explanation :
A party to a contract for services typically cannot assign his contractual obligations without the consent of the other party to the contract. While contractual rights can often be assigned, obligations usually cannot be transferred in the same way due to the personal nature of service contracts and the need for the consent of the other contracting party.