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.
-Assume there was a valid assignment.Simon still has not received the $10,000 and,when he calls Marvel,he finds the Marina has been sold to someone else and Marvel's whereabouts is unknown.He has a copy of the trade-in contract.

Question

Quizplus · Accepted Answer

Since Simon has a copy of the trade-in contract, he can show it as proof that he is entitled to the $10,000. As such, he may deduct the amount from what he owes S&N and make payments to the company totalling $60,000. This is the best choice for Simon as he can save money while still fulfilling his payment obligations to S&N. Option A is not practical since Marvel's whereabouts are unknown, and Option C places an unfair burden on Simon to pay for Marvel's debt. Option D and E are not applicable as they include Option A, which is not a viable choice.

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