Sally and Matteo Enter into a Contract in Which Matteo

question 71

Multiple Choice

Sally and Matteo enter into a contract in which Matteo agrees to paint a picture of a ship and Sally promises to pay $100 to Matteo for the painting. Matteo paints the picture of a ship, but assigns the right to collect payment of the $100 to Felipe. Is Matteo's assignment legally valid?

• A) Yes, because the right to payment can always be assigned.
• B) Yes, because the contract was not one for personal services.
• C) No, because the right to payment can never be assigned.
• D) No, because the contract was one for personal service.
• E) No, because it would increase the burden on Sally to pay Felipe instead of Matteo.

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Definitions:

Microsoft

A multinational technology company known for its software products, including the Windows operating system and the Office suite.

Linear Demand Curve

A straight-line graphical representation showing the inverse relationship between the price of an item and the quantity demanded.

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The total income generated by a company from its sales of goods or services before any costs are subtracted.

Deadweight Loss

Economic inefficiency that occurs when equilibrium is not attained or unattainable for a specific good or service.