Which of the Following Statements Is TRUE

question 44

Multiple Choice

Which of the following statements is TRUE?

• A)An assignee under an equitable assignment acquires its rights "subject to the equities," but an assignee under a statutory assignment does not.
• B)If the parties have tried, but failed, to create a statutory assignment, they cannot rely on an equitable assignment.
• C)An equitable assignment is valid only if it is unconditional and complete.
• D)An assignment of contractual rights sometimes is created by operation of law and without regard to the assignor's intention.
• E)The doctrine of vicarious performance is a type of assignment.

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Definitions:

Third-Party Lease

A contractual agreement where an outside party becomes the lessor, leasing assets or property to the primary party, commonly utilized in equipment and property rentals.

Independent Leasing Company

A business that provides leasing services without being affiliated with any single manufacturer or seller, allowing for a wide range of asset leasing options.

Captive Financial Lease

A leasing arrangement where the lessor is owned by or closely affiliated with the company that manufactures or sells the leased asset, often used to finance purchases from the parent company.

Sale and Leaseback

A financial transaction where an entity sells an asset and immediately leases it back from the buyer, allowing the seller to continue using the asset while freeing up capital.