With regard to the law governing privity of contract and assignment, which of the following is true?
A) Where the assignor assigns the same debt to two or more persons, if the promisor (debtor) pays out, in good faith, to the first assignee to give him notice, he has no further obligation.
B) If a promisor (debtor) accidentally pays out to the assignor after receiving notice of the assignment, he is free from any obligation to the assignee; the assignee must look to the assignor for payment.
C) Novation refers to the voiding of the original contract and substituting another.
D) An exception to the doctrine of privity of contract is a contract selling a car.
E) An equitable assignment is easier to enforce than a statutory assignment.
Correct Answer:
Verified
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