Noel and Lyle have a contract whereby Noel is to perform routine construction services according to the blueprints that Lyle has provided.Noel assigns the contract to David.As a result of this assignment:
A) Lyle can bring suit based upon detrimental reliance.
B) Noel has no more rights or responsibilities with regard to the contract.
C) Noel no longer has any rights under the contract,but he remains responsible for the duties he agreed to perform.
D) Noel has all of his rights under the contract,but he has no responsibility for the performance of the duties.

Question

Quizplus · Accepted Answer

An assignment transfers the rights to the assignee (here, David) but the assignor (Noel) remains responsible for the duties he agreed to perform under the contract. Therefore, Noel no longer has any rights under the contract (since he assigned them to David), but he remains responsible for performing his agreed-upon duties under the contract. Lyle can still hold Noel responsible for any breach of contract. Option A is incorrect because Lyle cannot bring suit based on detrimental reliance since there is no indication that Lyle changed his position in reliance on Noel's promise. Option B is incorrect because the assignment does not relieve Noel of his responsibilities under the contract. Option D is incorrect because Noel still has responsibilities under the contract even though he assigned his rights to David.

Noel and Lyle Have a Contract Whereby Noel Is to Perform