Which Statement Is True with Respect to Whether a Contract

question 2

Multiple Choice

Which statement is true with respect to whether a contract may be assigned even in the presence of an antiassignment clause?

• A)Assignments made by operation of law,assignments for the right to receive monetary payments,and assignments for the right to receive damages for a breach of contract to sell goods or services may be assigned even in the presence of an antiassignment clause.
• B)No contractual rights or duties may be assigned in the presence of an antiassignment clause.
• C)Antiassignment clauses are void as against public policy and have no effect on the right of assignment.
• D)Assignments for the right to receive monetary payments may be assigned,but no other assignments may be made in the presence of an antiassignment clause.
• E)Assignments made by operation of law may be assigned,but no other assignments may be made in the presence of an antiassignment clause.

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Definitions:

Short-rate Refund

A method of calculating the refund amount a policyholder receives if they cancel their insurance policy before it expires, which may include a penalty.

Premium Rate

The rate charged for an insurance policy, reflecting the cost of coverage.

Annual Premium

The annual premium is the total amount paid for an insurance policy in a year, covering the policyholder for a specified term.

Coinsurance Clause

An insurance policy clause specifying that, if a property is not insured up to a certain percentage of its value, the owner is the bearer of part of the insurance and will not be covered for the full amount of damages.