Question

Aspen assigns his right to receive payment from Donna to Henry. Later, Aspen assigns this same right to Doris. Doris gives notice to Donna on May 1, and Henry gives notice to Donna on May 2. Which of the following is most likely to be the court's ruling?

a) Doris's notice is effective.
b) Henry's notice is effective.
c) Neither notice is effective.
d) The notice given first is effective.

Answer 1

The court is most likely to rule that Doris's notice is effective as she was the first to notify Donna according to the first-to-notify principle in assignment law, making option 'a' the correct answer. option (A)

Step-by-step explanation:

When Aspen assigns his right to receive payment from Donna to Henry, and later to Doris, the issue becomes who has the right to receive payment. Generally, the rule under the first-to-notify principle in assignment law is that the first assignee to give notice to the obligor (in this case, Donna) has the stronger claim.

Since Doris notified Donna on May 1st and Henry notified on May 2nd, according to the first-to-notify rule, the court is most likely to rule that Doris's notice is effective, making option 'a' the correct answer. However, if there is a different contractual agreement or statutory provision affecting the assignment, that ruling could vary.