[AMERICANDREAM]

“Under which of the following circumstances would an assignment of rights under a contract be invalid?

a. The assignment was made without notice to the obligor.
b. The assignment was made without the assignor’s intent to transfer.
c. The assignment was made without delivery of an evidentiary document.
d. The assignment was made without notice to the assignee.

Answer:
Choice “b” is correct. There actually is no requirement that the assignor intend the assignment (contract law is based on objective actions as opposed to intent), but this is the best answer.
Choice “a” is incorrect. The obligor need not be given notice of the assignment, but of course, it is not effective against the obligor until the obligor is given notice. Thus, if the obligor owed the assignor $100 and the assignor secretly assigned the right, the obligor will be discharged by paying the assignor.

My pick was “a”. Here’s the reasoning:
The Becker textbook explains that generally, any assignment of right is allowed, except when it changes the obligor’s risk and involves personal services. I thought the answer choice “a” comes closest to “changing the obligor’s risk”.
Why is “a” not the best answer? Am I misunderstanding something?

[Skynet]

A Marriage License.

The moment you say ” I Do ” you automatically assigned all the rights and decision making to her.

[Missy]

Choice a doesn't necessarily change the obligors risks or involve personal services. If you owe me $100 and I say pay it to my husband, there's no change to your risk. If you didn't know I assigned that right and paid me instead, you've satisfied your obligation.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[Author]

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