Luziva Co.enters into a contract to deliver 200 coats to Buyer.Luziva determines that it cannot honor the contract,so it assigns the contract to Maniva Co.Maniva Co.delivers the specified 200 coats to Buyer per the contract.

Question

Quizplus · Accepted Answer

When a contract is properly assigned, the assignee (in this case, Maniva Co.) assumes all of the rights and obligations of the original party (Luziva Co.). Therefore, Buyer must accept the coats and pay Maniva Co. since they fulfilled the obligations of the original party. Option A is incorrect because the assignment is valid and Buyer cannot refuse to accept the coats because of the assignment. Option C is also incorrect because once a contract is assigned, the assignee becomes the responsible party to fulfill the obligations of the contract.

Luziva CoEnters into a Contract to Deliver 200 Coats to Buyer