Arthur enters into a contract with Brennon as a result of Brennon's fraud in the inducement.Under the contract,Brennon has the right to the payment of $100.Brennon assigns the right to the $100 to Carl.Arthur may assert the defense of fraud in the inducement to avoid paying Carl the $100.

Question

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Arthur can assert the defense of fraud in the inducement against Carl because Carl is standing in Brennon's shoes and therefore takes the assignment subject to any defenses that Arthur could assert against Brennon.

Arthur Enters into a Contract with Brennon as a Result