Mr. Zink hired Bruce Dorne to create a payroll program for his business. Bruce was to be paid $4,000 for the program. When Bruce was half-way finished, a creditor to whom he owed $2,000 pressed so hard for payment that Bruce assigned him $2,000 of the contract price, an amount he felt he had earned already. The creditor, Mr. Pressing, gave written notice that very day to Mr. Zink. On these facts, which of the following is true? (Read each statement separately.)
A) Mr. Zink must pay $2,000 to Mr. Pressing on the day that notice was given, because at that time Bruce had done half of the work on the $4,000 contract.
B) Mr. Pressing is entitled to $2,000 from Mr. Zink when the contract is completed, if at least that much is owed to Bruce by Zink at that time.
C) This assignment is a statutory assignment, not an equitable assignment.
D) This type of assignment is not recognized by the courts because it is an assignment of contractual obligations.
E) If Bruce bungled the assignment and the court determined that nothing was owed to him, Pressing could still get $2,000 from Zink.

Question

Quizplus · Accepted Answer

When an assignment of contract is made, the assignee steps into the shoes of the original contractor and acquires whatever rights the original contractor had. Here, Bruce assigned $2,000 of the $4,000 contract price to Mr. Pressing. As Bruce had completed half of the work, it is evident that he had earned at least $2,000 by the time of the assignment. Therefore, Mr. Pressing is entitled to $2,000 from Mr. Zink when the contract is completed, if at least that much is owed to Bruce by Zink at that time. This is a valid legal assignment.

Mr Zink Hired Bruce Dorne to Create a Payroll Program