Question

Fitch and Bert enter into a contract for the distribution of Fitch’s produce to local restaurants and wineries for which Fitch agrees to pay Bert. Bert later transfers his right to payment under the contract to Honest State Bank. This transfer is

Select one:

a. an obligation.

b. prohibited.

c. an assignment.

d. a delegation.

Answer 1

Transfer of contractual rights or liabilities by a party to the contract to some other person who is a not party to the contract is called assignment. Here process of assignment must be agreed by the parties of the contract. Otherwise it is it is not valid .

Obligations are not assignable only rghts

For example if A owes B rs 6 and B owes c like amount B has a right to receive from A and is liable pay c. B can ask A to pay directly to the C here B transferred his right to c it is called assignment