Garth's Imports sold a car to Wally on credit for $30,000.Garth assigned to Cassandra all of his rights to receive money from Wally.Cassandra did not inform Wally of the assignment.Therefore,Wally continued to make the next three payments directly to Garth.Shortly thereafter,Garth left the country with the money.If Cassandra sues Wally for the missing three payments

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Quizplus · Accepted Answer

Cassandra cannot collect the money from Wally because Wally was not notified of the assignment and therefore was not obligated to make payments to Cassandra. The assignment of rights without notification is generally not valid against the debtor. However, Cassandra may still be able to pursue Garth for the missing payments.

Garth's Imports Sold a Car to Wally on Credit for $30,000.Garth