Richly Merchandise,Inc.,contracts with Stand-Rite Contractors to build a store.Stand-Rite assigns the contract to Town Builders,which has a poor record of completing projects.Richly could most successfully argue that the con-tract cannot be assigned because
A)Richly did not consent to the assignment.
B)Richly did not receive adequate consideration for the assignment.
C)the assignment will materially increase the risk of nonperformance.
D)Town Builders was not an original party to the deal.

Question

Quizplus · Accepted Answer

Richly can argue that the assignment to Town Builders will materially increase the risk of nonperformance as they have a poor record of completing projects. This is a valid reason to prohibit the assignment of the contract.