Forrest makes and sells furniture. Forrest and Glenda enter into a contract for the delivery of Forrest's products to Glenda's Gear retail locations for which she agrees to pay the invoiced price. Forrest transfers the right to payment under the contract to Haulers Trucks & Trailers. This transfer is
A)a delegation.
B)an assignment.
C)a third party beneficiary contract.
D)prohibited.

Question

Quizplus · Accepted Answer

The transfer of the right to payment under the contract to Haulers Trucks & Trailers is an assignment, which is a transfer of a party's rights or interests in a contract to a third party. It does not involve the delegation of a task or responsibility, nor does it create a third party beneficiary contract. While some contracts may prohibit assignment, there is no indication that this is the case here.

Forrest Makes and Sells Furniture