With Regard to the Law Governing Privity of Contract and Assignment

question 121

Multiple Choice

With regard to the law governing privity of contract and assignment, which of the following is false?

• A) Where the assignor assigns the same debt to two or more persons, if the promisor (debtor) pays out in good faith to the first assignee to give him notice, he has no further obligation.
• B) If a promisor (debtor) accidentally pays out to the assignor after receiving notice of the assignment, he is free from any obligation to the assignee, and the assignee must look to the assignor for payment.
• C) A statutory assignment is easier to enforce than an equitable assignment.
• D) An exception to the doctrine of privity of contract is a contract granting an interest in land.
• E) Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another.

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Definitions:

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