With Regard to the Law Governing Privity of Contract and Assignment

question 103

Multiple Choice

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

• 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) Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another.
• C) 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.
• D) An exception to the doctrine of privity of contract is a contract granting an interest in land.
• E) A statutory assignment is easier to enforce than an equitable assignment.

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Definitions:

Competition Act

Legislation aimed at promoting healthy competition and preventing monopolies, anti-competitive practices within an economy.

Restraint of Trade

Legal agreements or policies that restrict competition or limit the freedom to conduct business in a specific market or manner.

Loss Leader Advertising

A marketing strategy where a product is sold at a loss to attract customers in the hope they will buy other items at full price.

Competition Act

Legislation aimed at promoting fair business practices, preventing anti-competitive behavior, and regulating mergers to ensure a competitive market environment.