Which of the Following Statements Is TRUE

question 6

Multiple Choice

Which of the following statements is TRUE?

• A) Even if the parties satisfy all of the usual requirements, rights under some types of contracts cannot be assigned.
• B) If there are two assignees of the same debt, a court will always favour the assignee that received its assignment first.
• C) As long as the required formalities are satisfied, a contractual obligation can generally be assigned by using either a statutory assignment or an equitable assignment.
• D) All common law provinces and territories allow statutory assignments, but only some of them allow equitable assignments.
• E) An assignee acquires rights against the debtor only if it provides new consideration to the debtor.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, often used in the time value of money calculations.

Compounded Annually

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a loan or deposit.

Inheritance

Wealth or attributes passed on to heirs upon the death of an individual.

Lump Sum

A lump sum is a single payment of money, as opposed to a series of payments made over time.