Elin owes Floyd $10,000. Floyd assigns the claim to Gary. Gary does not notify Elin of the assignment. A week later, Floyd assigns the same claim to Holly. Holly immediately notifies Elin of the assignment. Holly has
A) priority to payment in all states .
B) priority to payment in states that follow the English rule.
C) no priority to payment.
D) priority to payment in most states.

Question

Quizplus · Accepted Answer

In states that follow the English rule, the first assignee to notify the debtor has priority. Since Holly notified Elin first, she has priority in those states.

Elin Owes Floyd $10,000