What Is the Most Likely Outcome When an Assignment Is

question 61

Multiple Choice

What is the most likely outcome when an assignment is made in violation of an antiassignment clause?

• A) The court will always prohibit assignment.
• B) The court will never prohibit assignment.
• C) The court will treat the assignment as a breach of contract.
• D) The court will always allow assignment unless it is against public policy.
• E) The court will refer to the statute of frauds to determine the effectiveness of the assignment.

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Definitions:

Legal Expenses

Costs incurred by a business for legal services, such as attorney fees and court costs.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net identifiable assets, representing the company's reputation, brand, or similar factors.

Internally Generated

Refers to assets, revenues, or values created through the operations and activities of the company, not through external acquisition.

Research Costs

Expenses related to the investigation and exploration of materials, processes, or markets to generate new knowledge.