Barbara owes arturo $2,000. on july 1, arturo assigns the debt to charles. thereafter on july 15, arturo assigns the same right to dennis, who in good faith gives value for it and knows nothing about the first assignee. dennis immediately notifies barbara of the assignment. under:

a. under all of the rules, charles has priority since he was the first assignee in time.

b. under the majority rule, dennis has priority.

c. under the english rule, dennis has priority.

d. under the english rule, charles has priority.

Question

Business

Anna Sanders

10 December, 07:10

Barbara owes arturo $2,000. on july 1, arturo assigns the debt to charles. thereafter on july 15, arturo assigns the same right to dennis, who in good faith gives value for it and knows nothing about the first assignee. dennis immediately notifies barbara of the assignment. under:

a. under all of the rules, charles has priority since he was the first assignee in time.

b. under the majority rule, dennis has priority.

c. under the english rule, dennis has priority.

d. under the english rule, charles has priority.

+3

Answers (1)

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Richard · Answer 1

c. under the english rule, dennis has priority.

Explanation:

English rule is define as a an assessment related to a lawyer's fees when a litigation takes place.

The party that loses a case is obligated to. pay the legal fees of the other party.

On the other hand the American rule requires each party to pay it's own legal fees.

Beneficial ownership of a debt can be assigned, even though legal ownership cannot be assigned. An equitable assignment takes precedence over legal assignment.

In this scenario Dennis receives assignment of a debt from Charles, and is not aware of the first assignment (Arturo to Charles), so he is given priority