Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves
A) a right to receive payment.
B) a right to Ben's services.
C) rights under Ivy's insurance policy against Ben's failing to perform.
D) none of the choices.

Question

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves​
A) ​a right to receive payment.
B) ​a right to Ben's services.
C) ​rights under Ivy's insurance policy against Ben's failing to perform.
D) ​none of the choices.

Quizplus · Accepted Answer

A right to receive payment can be assigned without the consent of the other party to the contract. Therefore, Ben can assign his right to receive payment from Ivy to a third party. However, since the contract expressly prohibits any transfer of rights, this option may not be available in this particular scenario. Option B is incorrect because a personal service contract cannot be assigned without the consent of the other party. Option C is also incorrect because insurance policies are not contract rights and cannot be assigned. Option D is incorrect because there is at least one valid option.

Ben and Ivy Enter into a Contract Under Which Ben