With Regard to the Law Governing Privity of Contract and Assignment

question 145

Multiple Choice

With regard to the law governing privity of contract and assignment, which of the following is true?

• A) Where the assignor assigns the same debt to two or more persons, if the promisor (debtor) pays out in good faith to the first assignee to give him notice, he has no further obligation.
• B) If a promisor (debtor) accidentally pays out to the assignor after receiving notice of the assignment, he is free from any obligation to the assignee; the assignee must look to the assignor for payment.
• C) An equitable assignment is easier to enforce than a statutory assignment.
• D) An exception to the doctrine of privity of contract is a contract selling a car.
• E) Novation refers to the voiding of the original contract and substituting another.

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Definitions:

Contemporary Capitalism

The current form of capitalism characterized by a globalized economy, advanced technology, and the predominance of large corporations and financial institutions in economic decision-making.

Robert Merton

An American sociologist known for his theories on social structure, anomie, and the concept of unintended consequences.

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