ABC Construction Agreed to Build a Pool for Miranda in Exchange

question 65

Multiple Choice

ABC Construction agreed to build a pool for Miranda 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 Miranda to Mirth Enterprises in early June.In July,Miranda discovered that the pool leaked.Because ABC denied responsibility,Miranda 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)ABC can collect $100 000 from Miranda regardless of when she received notice of the assignment.
• D)Mirth can collect $100 000 from Miranda only if it notified her of the assignment before the pool began to leak in July.
• E)Because of the assignment,Miranda can sue Mirth on the basis of ABC's breach of contract.

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