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)a valid assignment because of the rule of freedom to contract.
B)a valid assignment because this is a simple transfer of the right to receive money.
C)an invalid assignment because it increases the burden of the payor.
D)an invalid assignment because this is a personal service contract.

Question

Quizplus · Accepted Answer

The assignment of the right to receive payment is generally valid as it is a transfer of a monetary right, which does not increase the burden on the payor.

A Rock Group Assigns Its Payment Under a Performance Contract