Sean has a right against Tanner and assigns it for value to Megan.Later, Sean gives Tanner a release.Megan:
A) may recover damages from Tanner for breach of an implied warranty.
B) will be unaffected by Sean's action.
C) has lost her right and has no remedy.
D) may recover damages from Sean for breach of an implied warranty.

Question

Quizplus · Accepted Answer

When Sean assigns his right against Tanner to Megan for value and later releases Tanner from the obligation, Megan may recover damages from Sean for breach of an implied warranty. This is because, by assigning the right to Megan, Sean implicitly warrants that he will do nothing to impair the value of the assignment. By releasing Tanner, Sean breaches this implied warranty, giving Megan a right to recover damages from Sean.

Sean Has a Right Against Tanner and Assigns It for Value