Pulpco contracts for logs from A1 Timber Co. ,which later made a statutory assignment of its rights and obligations to Forest Green Co.(FGC).The quality of FGC logs was less than the fine product usually delivered by A1 Timber,and for which the company was known,and Pulpco brought suit against A1 Timber on the grounds that the contract was not assignable.The court would find that the contract was assignable.

Question

Quizplus · Accepted Answer

Generally, contracts are assignable unless the language of the contract or the circumstances surrounding the contract indicate otherwise. In this case, there is no indication that the contract between Pulpco and A1 Timber was non-assignable, and thus the assignment to FGC would be valid. The issue of the quality of FGC's logs would need to be addressed separately.

Pulpco Contracts for Logs from A1 Timber Co