Acme Engineering needed cash and assigned a block of its accounts receivable to Wellington Finance Company.A week later,it assigned another block to Bagot Finance Company.By an oversight,the second block contained an account,a receivable from Smith,that Acme had already assigned to Wellington.The notice of assignment from Bagot arrived at the Smith offices before that of Wellington.Smith should pay against the demand of Bagot Co.

Question

Quizplus · Accepted Answer

In cases of multiple assignments, the first notice of assignment received by the debtor is given priority. In this case, Bagot Finance Company's notice arrived before that of Wellington Finance Company, so Smith should pay against the demand of Bagot Co.

Acme Engineering Needed Cash and Assigned a Block of Its