Final answer:
When Jimmy transfers his contract rights to Luis, Jimmy is known as the assignor, and Luis is the assignee. Option A is correct.
Step-by-step explanation:
Jimmy and Penny enter into a contract. When Jimmy transfers his rights under the contract to Luis, Jimmy becomes an assignor. An assignor is a person who transfers their rights or obligations under a contract to another party, known as the assignee.
In this case, Luis would be the assignee, as he is now entitled to the benefits of the contract originally held by Jimmy. The process is known as assignment, and it is important to note that not all rights and obligations may be transferable, depending on the contract's language and applicable law.
Jimmy is the assignor in this situation because he is the one who transfers his rights under the contract to Luis. Penny is not relevant to this question.