Assignees Should Promptly Notify the Promisor of an Assignment Because

question 21

Multiple Choice

Assignees should promptly notify the promisor of an assignment because the promisor who renders performance to the assignor without notice of the assignment:

• A) is still liable under the contract.
• B) has no further liability under the contract.
• C) creates a novation.
• D) cannot be sued by the assignee for nonperformance.

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Definitions:

Bankruptcy

The state of being bankrupt, being legally declared unable to pay debts; a petition to a court by an individual who is stating that he or she cannot pay any debt incurred.

Collection Agency Transaction

A financial activity where a collection agency attempts to recover funds owed by an individual or business.

Outsourcing

An arrangement by which a task, operation, or job that could be performed by employees within a company is instead contracted to another company; generally viewed as contracting out a specific business function to another company rather than having your own company manage that specific work.

Patient Ledger

A record detailing the financial transactions, charges, and payments for the services rendered to a patient by a medical practice.