Renie has a right to $1,000 against Edd and assigns it for $850 to Megan in exchange for a week's stay at Megan's beach house. Later, Renie gives Edd a release. Megan:
A) will be unaffected by Renie 's action.
B) may recover damages from Renie for breach of an implied warranty.
C) may recover damages from Edd for breach of an implied warranty.
D) has lost her right and has no remedy.

Question

Quizplus · Accepted Answer

When Renie assigned her right to Megan, she impliedly warranted that she would do nothing to defeat or impair that right. By giving Edd a release, Renie breached this implied warranty, allowing Megan to recover damages from Renie for the breach.

Renie Has a Right to $1,000 Against Edd and Assigns