Which one of the following assignments would probably be prohibited by a court?
A) Mary is in debt. A credit card company calls and threatens to sue. Mary orally assigns her next bimonthly paycheck to her creditor.
B) John is a house painter. He is scheduled to paint Molly's home on Monday. John wakes up Monday morning with a stiff neck. He calls Ed, who is also a painter, to offer to pay him to begin the job at Molly's.
C) Ron has a contract with Bonett Bank to service their coffee machines. He assigns the remainder of his contract with Bonett to Michelle, who also owns a coffee service.
D) Max buys a used car from Al's Autos for $10,000, financed by Al. Al needs quick cash and assigns the loan proceeds to Omar for $8,500 cash. Max now makes his car loan payments to Omar.

Question

Which one of the following assignments would probably be prohibited by a court?
A) Mary is in debt. A credit card company calls and threatens to sue. Mary orally assigns her next bimonthly paycheck to her creditor.
B) John is a house painter. He is scheduled to paint Molly's home on Monday. John wakes up Monday morning with a stiff neck. He calls Ed, who is also a painter, to offer to pay him to begin the job at Molly's.
C) Ron has a contract with Bonett Bank to service their coffee machines. He assigns the remainder of his contract with Bonett to Michelle, who also owns a coffee service.
D) Max buys a used car from Al's Autos for $10,000, financed by Al.  Al needs quick cash and assigns the loan proceeds to Omar for $8,500 cash.  Max now makes his car loan payments to Omar.

Quizplus · Accepted Answer

Assignments that involve personal services or that would significantly change the obligee's expectations are generally prohibited. In choice A, an assignment of future wages might be considered personal and could be subject to various legal restrictions, making it the most likely to be prohibited by a court.

Which One of the Following Assignments Would Probably Be Prohibited