Asked by
Samantha Conway
on Nov 27, 2024
Verified
Laminate LLC agrees to buy factory equipment from Metalwork Company on the seller's misrepresentation that it meets certain specifications. Metalwork assigns the right to payment on the deal to Nations Credit Corporation. When the buyer discovers the fraud, the firm returns the equipment and cancels their contract. Laminate
A) must pay the entire contract price to Nations Credit.
B) need not pay any of the contract price to Nations Credit.
C) must reimburse Nations Credit for costs with respect to the assignment.
D) must pay a prorated amount of the contract price to Nations Credit.
Misrepresentation
The act of providing false or misleading information about a material fact in a transaction.
Contract Price
The amount of money agreed upon by parties involved in a contract for services or goods to be provided or delivered.
- Understand the entitlements and liabilities of assignors, assignees, obligors, and obligees in the realm of assigned contracts.
- Understand the legal options accessible to parties in the event of a contract breach by one of them or the infringement of a third party beneficiary's rights.
Verified Answer
JH
Learning Objectives
- Understand the entitlements and liabilities of assignors, assignees, obligors, and obligees in the realm of assigned contracts.
- Understand the legal options accessible to parties in the event of a contract breach by one of them or the infringement of a third party beneficiary's rights.