Adam Bought a Boat from Charlie for $900 Payable on November

question 27

Multiple Choice

Adam bought a boat from Charlie for $900 payable on November 6. On November 6, when Charlie came for the money, Adam didn't have it. Adam was, however, employed by Ms. Bey to do some market research. He was to be paid $1000 for his report, due on November 12. Charlie wanted an assignment of $900 of the amount Adam expected to receive November 12. Adam wrote out an assignment with all the essential information and signed it. Charlie gave written notice of the assignment with all pertinent information to Ms. Bey the next day, November 7. On November 12, Adam had not finished his report. The contract provided that he would lose $100 for every week he was late. Adam was two weeks late in submitting his report. Which of the following is true?

• A) The assignment fails to be an assignment at all because Adam failed to get the consent of Ms. Bey.
• B) This assignment is a statutory assignment.
• C) Ms. Bey must honour the notice of assignment by paying out the $900 on the day the notice was received.
• D) Charlie, the assignee, would receive $800 from Ms. Bey and have to look to Adam for the other $100 owed.
• E) Charlie would get nothing because Ms. Bey owed less than the amount assigned.

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Definitions:

Merchandise Purchases Budget

A financial plan that estimates the amount of inventory a company needs to buy to meet sales needs for a future period.

Sales Budget

A detailed plan that outlines projected sales for a future period, taking into account factors like marketing strategies and market conditions.

Sole Task

A sole task is a single duty or responsibility assigned to a person or a system.

Continuous Budgeting

A financial planning approach that involves continuously updating a budget by adding a new period as the current period is completed.