McCall and Teresa enter into a contract for the distribution of McCall's produce to local restaurants for which Teresa agrees to pay.McCall transfers his right to payment under the contract to Midtown Bank.This transfer is
A)a delegation.
B)an assignment.
C)a novation.
D)prohibited.

Question

Quizplus · Accepted Answer

The transfer of McCall's right to payment under the contract to Midtown Bank is an example of an assignment. Assignment is a transfer of a party's rights under a contract to a third party. In this case, McCall transferred his right to receive payment from Teresa to Midtown Bank.

McCall and Teresa Enter into a Contract for the Distribution