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

Question

Quizplus · Accepted Answer

The transfer of the right to payment under the contract from B to C Bank is an example of an assignment. An assignment occurs when a party transfers their rights and obligations to a third party. A delegation, on the other hand, occurs when a party transfers their duties to a third party. Neither an obligato nor prohibition is relevant to this situation.

A and B Enter into a Contract for the Distribution