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John entered into a contract with Barb to restore Barb’s antique Ford for $9,000. Because John owes his younger brother a large sum of money, John assigned, prior to notifying Barb of the assignment, his right to receive pay- ment to his brother. John began the restoration, but quickly stopped working on the car. Because of this, Barb retrieved the car from John. Almost no restoration work had been performed. Which of the following is true in this situation?

a. John’s assignment of his right to payment without Barb’s consent was improper and discharged John’s duties under the contract.

b. John’s brother does not have a right to collect the $9,000 from Barb.

c. Because of the assignment, John’s brother was responsible for John’s performance.

d. As a result of the assignment, John’s brother is entitled to payment despite the fact that John did not perform the restoration.

e. Barb is obligated to allow John’s brother to complete the restoration if he so desires.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91641100

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