ABC Construction Agreed to Build a Pool for Carmen in Exchange

question 11

Multiple Choice

ABC Construction agreed to build a pool for Carmen in exchange for $100 000.The pool was to be built during the month of May, but payment was not due until the end of August.The pool was completed on schedule.However, because it was experiencing financial difficulties, ABC orally assigned its contractual rights against Carmen to Miranda in early June.In July, Carmen discovered that the pool leaked.Because ABC denied responsibility, Carmen had the problem fixed by another company at a cost of $20 000.The evidence now indicates that the problem was in fact caused by ABC's breach of contract.ABC failed to use appropriate materials when it constructed the pool.Which of the following statements is TRUE?

• A)The assignment may be statutory, but it cannot be equitable.
• B)The assignment may be equitable, but it cannot be statutory based on the existing state of the statute law.
• C)Miranda can collect $100 000 from Carmen regardless of when she received notice of the assignment.
• D)Miranda can collect $100 000 from Carmen only if it notified her of the assignment before the pool began to leak in July.
• E)Because of the assignment, Carmen can sue Miranda on the basis of ABC's breach of contract.

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Definitions:

Esteem Need

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Maslow's Hierarchy

A theory of human motivation represented as a pyramid with five levels of needs, from basic physiological needs to self-actualization.

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