Jan is obligated under a contract to pay Katie $500. Katie assigns the right to receive the funds to Loren. If Jan does not pay the debt, the obligee can
A)extinguish the contract rights of the obligor.
B)demand performance of the deal from any of the original parties.
C)enforce the payment in court.
D)none of the choices.

Question

Quizplus · Accepted Answer

When Katie assigns her right to receive funds from Jan to Loren, Loren becomes the new obligee. If Jan fails to pay, Loren, as the current obligee, has the right to enforce the payment in court. The assignment of rights does not change the original obligation of the obligor (Jan) to pay, but it does change who is entitled to receive the payment.

Jan Is Obligated Under a Contract to Pay Katie $500