Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 8

Smith owned several condominiums that he offered for sale. Each purchaser was required under the terms of Smith's contract to assume the responsibility to pay, among other things, taxes. Smith assigned (sold) his interest in these condominiums to Roberts, who failed to pay the taxes on the units according to the terms of the contract. Roberts claims that in purchasing Smith's interest she was acquiring only the right to collect payments from individual purchasers, but not the duty to pay taxes. The contract of sale, however, expressly stated that the provisions would bind the "successors and assigns" and that Roberts was aware of these provisions, including the payment of taxes. Roberts was sued by her purchasers of these condominiums compelling her to pay the taxes. The question is whether the court should require Roberts to assume the duty to pay these taxes as part of the assignment made to her by Smith. What do you think? (6 Utah, 2d 314, 313 P2d 465)