Glocker assigned to Baines her right to collect $500 from Palmer. Palmer, who was not notified of the assignment, paid the $500 to Glocker. Can Baines collect the $500 from Palmer?

Question

Quizplus · Accepted Answer

C is correct because when an obligor (in this case, Palmer) makes payment to the original party (Glocker) before being notified of the assignment to a third party (Baines), the obligor is fully released from further obligations to the assignee. This is because the obligor cannot be expected to pay a debt to someone they are not aware has the right to receive it.

Glocker Assigned to Baines Her Right to Collect $500 from Palmer