Linda assigns to Ben a right to receive rent payments.The law implies the following warranty on Linda's part:
A) the tenant is solvent.
B) Linda actually has a right to the rental payments.
C) the tenant will actually pay.
D) No warranties are implied by law in an assignment.

Question

Quizplus · Accepted Answer

When Linda assigns a right to receive rent payments to Ben, the law implies a warranty that Linda actually has the right to the rental payments. This means that Linda is warranting that she is the rightful recipient of the rent payments and that she has not assigned this right to anyone else. The law does not imply warranties regarding the solvency of the tenant or the tenant's ability to actually pay the rent. Option D is incorrect, as the law does imply warranties in certain situations.

Linda Assigns to Ben a Right to Receive Rent Payments