Simon bought a used yacht from Marvel's Marina and Boatyard for $70,000 to be paid in instalments over six years.He traded in his smaller yacht for $10,000 at the same time,but Marvel wanted to keep the two transactions separate for financial reasons and he promised to issue a cheque to Simon for the trade-in.Marvel assigned the $70,000 contract to Strait and Naro Finance (S&N).The first Simon knew of this was when he received copies of both contracts and a notice to pay the payments to S&N.
-Based on the above scenario,which is the most correct?

Question

Quizplus · Accepted Answer

When Marvel assigned the contract to S&N, Simon became obligated to make payments to S&N as they were now the rightful owners of the contract. Simon cannot make payments to Marvel and expect them to forward the payments to S&N, as there is no obligation for Marvel to do so. Therefore, Simon must make the payments to S&N from now on.

Simon Bought a Used Yacht from Marvel's Marina and Boatyard