Question

Carrie was a top scholar in the legal field. Roger hired her to teach a Business Law course in his private school. Roger agreed to pay Carrie $15,000 per month for six months. The contract was signed and effective on January 1st, with classes starting on January 9th.

Carrie transferred her right to February’s payment to her friend Jen. Jen did not give Carrie anything for the right to payment; Carrie was just being nice.

On March 10th, Roger sold his school to Kyle. As part of the sale, Roger transferred to Kyle the right to have Carrie teach at the school.

Carrie decided she did not want to teach at the school if Kyle owned it, so on April 1st, she paid Mary $20,000 and transferred her obligation to teach to Mary.

Identify the type of transfer (of the right to payment) from Carrie to Jen and discuss the relevant Chapter 16 law to explain if the transfer is valid. (Write at least 2-3 sentences).
Identify the type of transfer (of the right to have Carrie teach) from Roger to Kyle and discuss the relevant Chapter 16 law to explain if the transfer is valid. (Write at least 2-3 sentences).
Identify the type of transfer (of the obligation to teach) from Carrie to Mary and discuss the relevant Chapter 16 law to explain if the transfer is valid. (Write at least 2-3 sentences).

Answer 1

1. The type of transfer from Carrie to Jen is an assignment. An assignment occurs when a party transfers a contractual right to another party. The assignment of the right to payment is valid as long as it is not prohibited by the original contract or by law. In this case, the contract between Roger and Carrie did not prohibit the assignment of the right to payment, and there is no law that prohibits it, so the transfer is valid.

2. The type of transfer from Roger to Kyle is an assignment. When a contract is assigned, the new assignee steps into the shoes of the original party and assumes all rights and obligations under the contract. An assignment can be valid unless the contract prohibits it or the obligations that are being assigned have already been performed. In this case, the contract between Roger and Carrie did not prohibit assignment, and the obligation to have Carrie teach had not yet been performed. Therefore, the transfer is valid.

3. The type of transfer from Carrie to Mary is a delegation. A delegation occurs when a party transfers their obligation to another party. The general rule is that obligations under a contract are not transferable unless the contract specifically allows it. In this case, there is no mention of delegation in the original contract, so the transfer could be invalid. However, if the obligation being delegated is for services that are personal in nature, such as teaching, the delegation may be invalid. In this case, the court would need to determine if teaching is a personal service.