Richly Retail Outlets,Inc.,contracts with Stand-Rite Contractors to build a store. Stand-Rite assigns the contract to Town Builders,which has a poor record of completing projects. Richly could most successfully argue that the contract cannot be assigned because

Question

Quizplus · Accepted Answer

The best choice is C because the assignment will materially increase the risk of nonperformance. Richly can argue that Town Builders has a poor record of completing projects, which increases the risk that the store may not be built according to specifications or completed on time. This is a valid reason to prevent the assignment of the contract. Consent to the assignment (A), adequate consideration (B), and being an original party to the deal (D) are not relevant factors in this scenario.