Eli owes Martin $10,000. Martin assigns the claim to Jack. Jack does not notify Eli of the assignment. A week later, Martin assigns the same claim to Allen. Allen immediately notifies Eli of the assignment. Allen
A) has priority to payment in all states.
B) has priority to payment in states that follow the English rule.
C) does not have priority to payment in any state.
D) has priority to payment in most states.

Question

Eli owes Martin $10,000. Martin assigns the claim to Jack. Jack does not notify Eli of the assignment. A week later, Martin assigns the same claim to Allen. Allen immediately notifies Eli of the assignment. Allen​
A) ​has priority to payment in all states.
B) ​has priority to payment in states that follow the English rule.
C) ​does not have priority to payment in any state.
D) ​has priority to payment in most states.

Quizplus · Accepted Answer

Allen has priority to payment in states that follow the English rule because under the English rule, the first assignee to notify the debtor of the assignment has priority. Since Allen notified Eli first, he would have priority in those jurisdictions.

Eli Owes Martin $10,000