B is corrent. A debtor who does not have knowledge of a creditor’s assignment of his/her right to receive payment can extinguish all of his/her liability regarding the debt by paying the assignor. It is the duty of the assignee to notify the debtor of the assignment. In addition, an assignor who receives payment from the debtor after the assignment has occurred will always be liable to the assignee for payment received. In this case, since Pine paid the debt owed to Quick prior to receiving notice of the assignment, he/she has extinguished all liability on the debt. However, Quick is liable to Taft for payment received. Consequently, Taft is entitled to collect $50,000 from Quick only.
A is incorrect. A debtor who does not have knowledge of a creditor’s assignment of his/her right to receive payment can extinguish all of his/her liability regarding the debt by paying the assignor. It is the duty of the assignee to notify the debtor of the assignment. In addition, an assignor who receives payment from the debtor after the assignment has occurred will always be liable to the assignee for payment received. In this case, since Pine paid the debt owed to Quick prior to receiving notice of the assignment, he/she has extinguished all liability on the debt. However, Quick is liable to Taft for payment received. Consequently, Taft is entitled to collect $50,000 from Quick only.
A is incorrect. A debtor who does not have knowledge of a creditor’s assignment of his/her right to receive payment can extinguish all of his/her liability regarding the debt by paying the assignor. It is the duty of the assignee to notify the debtor of the assignment. In addition, an assignor who receives payment from the debtor after the assignment has occurred will always be liable to the assignee for payment received. In this case, since Pine paid the debt owed to Quick prior to receiving notice of the assignment, he/she has extinguished all liability on the debt. However, Quick is liable to Taft for payment received. Consequently, Taft is entitled to collect $50,000 from Quick only.
D is incorrect. A debtor who does not have knowledge of a creditor’s assignment of his/her right to receive payment can extinguish all of his/her liability regarding the debt by paying the assignor. It is the duty of the assignee to notify the debtor of the assignment. In addition, an assignor who receives payment from the debtor after the assignment has occurred will always be liable to the assignee for payment received. In this case, since Pine paid the debt owed to Quick prior to receiving notice of the assignment, he/she has extinguished all liability on the debt. However, Quick is liable to Taft for payment received. Consequently, Taft is entitled to collect $50,000 from Quick only.
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