Marta, Carly, and Alec: Assignment of Rights

There is an interesting legal scenario involving Marta, Carly, and Alec. Marta owes Carly $5,000 under a contract for maid services that Carly performed. On the other hand, Carly owes her landlord, Alec, $6,000 in rent. Carly wants to assign to Alec the right to receive the $5,000 from Marta. However, there is a clause in the contract between Marta and Carly that prohibits its assignment.

Legal Implications:

When Carly tries to assign the rights to receive the $5,000 to Alec, despite the clause prohibiting assignment, a court will most likely:

Answer: not honor the clause prohibiting assignment.

Explanation: This is because a contract cannot prevent an assignment of the rights to receive personal services. In general, the law allows for the assignment of rights unless there is a specific provision prohibiting it. In this case, since the contract between Marta and Carly involves personal services, Carly should be able to assign the right to receive payment from Marta to Alec, even though there is a clause in the contract that prohibits it.

What will a court most likely do if Carly assigns the right to receive $5,000 from Marta to Alec despite the clause prohibiting assignment in their contract? A court will most likely not honor the clause prohibiting assignment, as a contract cannot prevent the assignment of rights to receive personal services.
← Drop shipping a modern business practice Accounting treatment of supplies expenses →