Pulpco contracts for logs from A1 Timber Co., who later made a statutory assignment of its rights and obligations to Forest Green Co. (FGC). The quality of FGC logs was less than the fine product usually delivered by A1 Timber, and for which they were known, and Pulpco brought suit against A1 Timber on the grounds that the contract was not assignable. The court would find that the contract was assignable.

Question

Quizplus · Accepted Answer

Contracts are generally assignable unless the contract involves personal services, unique goods, or if the assignment would significantly change the obligor's duties or risks. Since logs are not unique goods and assuming the contract did not specifically prohibit assignment or require a specific quality of logs that only A1 Timber could provide, the assignment to Forest Green Co. would be valid, and the court would likely find the contract was assignable.

Pulpco Contracts for Logs from A1 Timber Co