Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for Beneficial to transport a truckload of hay for which Animal Feed agrees to pay. Due to schedule conflicts, Beneficial contacts Crop Transport Company, to which Beneficial "assigns all rights under the contract." This transfer is1) prohibited. 2) an obligation and a cancelation. 3) an alienation and a negotiation. 4) an assignment and a delegation.

Question

Business

Regan Coleman

20 February, 18:08

Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for Beneficial to transport a truckload of hay for which Animal Feed agrees to pay. Due to schedule conflicts, Beneficial contacts Crop Transport Company, to which Beneficial "assigns all rights under the contract." This transfer is1) prohibited. 2) an obligation and a cancelation. 3) an alienation and a negotiation. 4) an assignment and a delegation.

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Emiliano Mills · Answer 1

4) an assignment and a delegation.

Explanation:

A contract assignment occurs when one party involved in a contract, called the assignor, transferred the contract's performance duties and benefits to a third party, called the assignee. The obligations acquired by a contract cannot be transferred to an assignee without the consent of the other party involved (not the assignor), so the assignor can transfer duties to perform and benefits but not obligations.

In this case, Beneficial assigned its contract with Animal Feed to Crop Transport, and delegated its duties to perform and benefits to Animal Feed.