If an assignor assigns the same rights to two different assignees:
A) the assignee who first received the assignment has priority in receiving payment from the obligor.
B) the assignee who first notifies the obligor of the assignment has priority in receiving payment from the obligor.
C) the obligor must pay both assignees equal amounts but no more than what would have been paid had there only been one assignment.
D) the assignment becomes void and the original contract remains in force.
E) the original contract and the assignments, thereafter, will be declared void since assigning the same rights to two assignees is illegal.

Question

Quizplus · Accepted Answer

A dishonest or careless assignor may assign the same contract rights to two different assignees. Notification to the obligor is especially important in this situation. In most states, the law says that the first assignee to notify the obligor has priority no matter which assignee receives the first assignment of rights.

If an Assignor Assigns the Same Rights to Two Different