Barbara owes Arthur $2,000. On July 1, Arthur assigns the right to the $2,000 to Caleb. Thereafter, on July 15, Arthur assigns the same right to David, who in good faith gives value for it and knows nothing about the first assignee. In this case:
A) Caleb has the right to the payment of $2,000.
B) David has the right to the $2,000.
C) neither Caleb nor David can claim the $2,000.
D) The rule differs by state.

Question

Quizplus · Accepted Answer

The rule regarding assignment of rights can differ by state, with some states following the "first in time, first in right" rule, while others may follow the "first to notify the debtor" rule.

Barbara Owes Arthur $2,000