Barbara owes Arturo $2,000.On July 1,Arturo assigns the debt to Charles.Thereafter on July 15,Arturo assigns the same right to Dennis,who in good faith gives value for it and knows nothing about the first assignee.Dennis immediately notifies Barbara of the assignment.Under:
A) all of the rules,Charles has priority since he was the first assignee in time.
B) the majority rule,Dennis has priority.
C) the English Rule,Dennis has priority.
D) the English Rule,Charles has priority.

Question

Quizplus · Accepted Answer

Under the English Rule, the first assignee to give notice to the debtor has priority. In this case, Dennis gave notice to Barbara before Charles did, so Dennis has priority. It does not matter that Charles was the first assignee in time, as long as Dennis acted in good faith and gave value for the assignment. Therefore, option C is the best choice.

Barbara Owes Arturo $2,000