Arthur enters into a contract with Bob as a result of Bob's fraud in the inducement.Under the contract, Bob has the right to the payment of $100.Bob assigns the right to the $100 to Carl.Arthur may assert the defense of fraud in the inducement to avoid paying Carl the $100.

Question

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Arthur can assert the defense of fraud in the inducement against Carl because Carl, as an assignee, stands in the shoes of Bob and is subject to the same defenses that Arthur could assert against Bob.

Arthur Enters into a Contract with Bob as a Result