McCall and Teresa enter into a contract for the distribution of McCall's produce to local restaurants for which Teresa agrees to pay.McCall transfers his right to payment under the contract to Midtown Bank.This transfer is
A)a delegation.
B)an assignment.
C)a novation.
D)prohibited by law.

Question

Quizplus · Accepted Answer

The transfer of McCall's right to payment under the contract to Midtown Bank is an assignment. A delegation is the transfer of the duty to perform under the contract, while a novation is a substitution of a new party for one of the original parties to the contract. There is no indication that such a transfer is prohibited by law in this scenario.

McCall and Teresa Enter into a Contract for the Distribution