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Michelangelo contracts to paint Pope’s two-story house for $5,000. Pope realizes that he will not have sufficient money, so he transfers his rights under this agreement to his neighbor, Van Gogh, who has a three-story house. Van Gogh notifies Michelangelo that Pope’s contract has been assigned to him and demands that Michelangelo paint Van Gogh’s house for $5,000. Is Michelangelo required to do so? Discuss.

Assume that Michelangelo agrees to the assignment of the house-painting contract to Van Gogh. After, Michelangelo fails to perform the contract to paint Van Gogh’s house. Van Gogh sues Pope for damages. Is Pope liable? Discuss.

Operation Management, Management Studies

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