Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because
A) Retail did not consent to the assignment.
B) Retail did not receive adequate consideration for the assignment.
C) the assignment will materially increase the risk of nonperformance.
D) Tough Road was not an original party to the deal.

Question

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because​
A) ​Retail did not consent to the assignment.
B) ​Retail did not receive adequate consideration for the assignment.
C) ​the assignment will materially increase the risk of nonperformance.
D) ​Tough Road was not an original party to the deal.

Quizplus · Accepted Answer

Retail could argue that the assignment to Tough Road Company will materially increase the risk of nonperformance due to their poor record of completing projects. This is a valid reason for objecting to the assignment under the doctrine of assignment.