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mestny [16]
3 years ago
7

(a) When an anti-assignment clause exists in a contract, a court will not enforce it because it is against public policy.

Business
1 answer:
lidiya [134]3 years ago
4 0

Answer:

a. <u>FALSE</u>

b. A contract cannot forbid the assignment of the right to receive <u>funds</u> . Assignments also cannot be restricted for the transfer of <u>real estate</u> , also called a restraint against <u>alienation</u> . A contract cannot prohibit the assignment of checks or promissory notes, also called <u>negotiable instruments</u> . The right to receive <u>damages</u> in a contract for the sale of <u>goods</u> also can be assigned, even if the contract forbids it.

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Answer:

The correct answer is:

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c) When a corporation is established, its shares may be in the hands of a small group of investors, perhaps the company's administrators plus some sponsors. In this case, the shares are not sold to the public and the company is closed. Over time, if the company grows and new shares are issued to raise capital, these shares go public. The company becomes a public company.

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