Bentley Inc operates a sporting goods store. In January, it purchased a shipment of baseball bats from Tadpole Manufacturing Ltd for $20 000. In February, Tadpole orally assigned its rights under that contract to J&H Collections. In May, Bentley purchased a shipment of footballs from Tadpole for $15 000 under a separate contract. Immediately after delivery, Bentley discovered that the footballs were defective. They had been improperly treated with a chemical that completely destroyed their leather exterior. The footballs consequently are completely worthless. Both contracts between Bentley and Tadpole required payment to be made by the end of June. Which of the following statements is TRUE?
A) Because the assignment is equitable, J&H can collect $20 000 from Bentley regardless of when it notified Bentley of the assignment.
B) Because the assignment is statutory, J&H can sue Bentley without joining Tadpole as a party to that action.
C) The assignment may be equitable, but it cannot possibly be statutory.
D) Even if Bentley paid for the baseball bats as soon as they were delivered (even though payment was not required until the end of June) , it will have to pay the price a second time to J&H, if J&H provides written notice of the assignment before the end of June.
E) J&H can collect $20 000 from Bentley as long as it notified Bentley of its assignment before the end of June.
Correct Answer:
Verified
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