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

Question

Quizplus · Accepted Answer

The transfer of right to payment under the contract from Gert to Honor Bank is an assignment. A delegation would involve Gert transferring only his duties under the contract to another party. An obligato is not a legal term. While the contract may prohibit assignments, the question does not provide that information.

Fitch and Gert Enter into a Contract for the Distribution