[Anonymous]

On February 1, Burns contracted in writing with Nagel to sell Nagel a used car. The contract provided that Burns was to deliver the car on February 15 and Nagel was to pay the $800 purchase price not later than March 15. On February 21, Burns assigned the contract to Ross for $600. Nagel was not notified of the assignment. Which of the following statements is correct’?

a. By making the assignment, Burns impliedly warranted Nagel would pay the full purchase price.

b. Ross will not be subject to any contract defenses Nagel could have raised against Burns.

c. The assignment to Ross is invalid because Nagel was not notified.

d. By making the assignment, Burns impliedly warranted a lack of knowledge of any fact impairing the value of the assignment.

Ans is D.

English is my 2nd language. I do not understand what is meant in choice D. Can some one explain this question to me please.

[Anonymous]

cpa_man- When Burns assigned the contract to Ross, he essentially said that he did not know of anything wrong with the vehicle or a reason why Ross would not pay. In other words, Burns was not aware of engine trouble, fraud, or impairment to make the value of the used car less than $600. The assigned claim is valid and Burns had title to the used vehicle. Ross will collect $800 when Nagel pays Burns in three weeks. Nagel would not know to pay Ross directly since he has not been notified.

[Anonymous]

cpa_man- When Burns assigned the contract to Ross, he essentially said that he did not know of anything wrong with the vehicle or a reason why Ross would not pay. In other words, Burns was not aware of engine trouble, fraud, or impairment to make the value of the used car less than $600. The assigned claim is valid and Burns had title to the used vehicle. Ross will collect $800 when Nagel pays Burns in three weeks. Nagel would not know to pay Ross directly since he has not been notified.

[Author]

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