Mr.Zink hired Bruce Dorne to create a payroll program for his business.Bruce was to be paid $4000 for the program.When Bruce was halfway finished,a creditor to whom he owed $2000 pressed so hard for payment that Bruce assigned him $2000 of the contract price,an amount he felt he had earned already.The creditor,Mr.Pressing,gave written notice that very day to Mr.Zink.On these facts,which of the following is true? (Read each statement separately.)
A)If Bruce bungled the assignment and the court determined that nothing was owed to him,Pressing could still get $2000 from Zink.
B)Pressing is entitled to $2000 from Zink when the contract is completed,if at least that much is owed to Bruce by Zink at that time.
C)This assignment is a statutory assignment,not an equitable assignment.
D)This type of assignment is not recognized by the courts because it is an assignment of contractual obligations.
E)Zink must pay $2000 to Pressing on the day the notice was given,because at that time Bruce had done half of the work on the $4000 contract.

Question

Quizplus · Accepted Answer

Choice A is false because if Bruce bungled the assignment and the court determined that nothing was owed to him, Pressing would not be entitled to $2000 from Zink.

Choice B is true because Pressing is entitled to $2000 from Zink when the contract is completed if at least that much is owed to Bruce by Zink at that time.

Choice C is false because this assignment is not a statutory assignment, but an equitable assignment.

Choice D is false because this type of assignment is recognized by the courts as an equitable assignment.

Choice E is false because Zink does not have to pay Pressing $2000 on the day the notice was given because Bruce had only completed half of the work on the $4000 contract at that time. Pressing is only entitled to payment if at least $2000 is owed to Bruce by Zink when the contract is completed.

MrZink Hired Bruce Dorne to Create a Payroll Program for His