A rock group assigns its payment under a performance contract to the Costume Shop,a business that has supplied the group with outrageous stage outfits,and to which the group owes a great sum of money.This is a(n)
A)valid assignment because of the rule of freedom to contract.
B)valid assignment because this is a simple transfer of the right to receive money.
C)invalid assignment because it increases the burden of the payor.
D)invalid assignment because this is a personal service contract.

Question

Quizplus · Accepted Answer

This is a valid assignment because it is a transfer of the right to receive money and does not increase the burden of the payor. The fact that it is for payment under a performance contract does not make it an invalid assignment. Also, the fact that the contract is for personal services does not necessarily make it invalid, as long as the assignment does not alter the nature of the services to be performed by the group.

A Rock Group Assigns Its Payment Under a Performance Contract