A corporation entered into a contract with an owner of land for the transfer of land at a price of $500,000 in sixty days. The c

Question

2 years ago

11

A corporation entered into a contract with an owner of land for the transfer of land at a price of $500,000 in sixty days. The c

ontract was silent as to its assignment. Ten days after the contract was executed, the corporation assigned the contract to a developer with no connections to the corporation. The owner, upon learning of the assignment, has indicated that she objects to the assignment because the developer is not as creditworthy as the corporation and, as a result, there is a greater chance that the developer will be unable to pay the purchase price. Is the owner bound to convey the land to the developer

Business

1 answer:

Zielflug [23.3K] · Answer 1 · 2022-11-04T19:05:11+03:00

Answer:

Yes, because the corporation remains liable to the owner under the contract

Explanation:

The above answer is true because in this case, there is no limit to the assignment of the contractual rights between the two parties, hence this assignment of a contract would be treated as both an assignment of rights and a delegation of duties.

Therefore, while the corporation in this case has delegated its duties and assigned its rights under the contract to the developer by assigning the contract to the developer, the corporation is still considered to be liable to the owner for payment of the purchase price.

And given the fact that the developer is not as creditworthy as the corporation, and thus there is a greater chance that the developer will be unable to pay the purchase price, the owner has the rights under the contract arrangement to contractually compel the corporation to do so.