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Abby's Cakes, Inc, leased space in a shopping center from Colonial Palms Plaza. The lease contained a clause that stated that Colonial would pay a
Abby's Cakes, Inc, leased space in a shopping center from Colonial Palms Plaza. The lease contained a clause that stated that Colonial would pay a construction allowance of up to exist11, 250 to Abby's if Abby's would complete some improvements to the premises. The lease also contained a clause that stated that any "assignment, mortgage, pledge, or encumbrance" made without Colonial's written consent would be void. Abby's began work on the improvements and, without obtaining Colonial's consent, assigned its right to the first exist8,000 of the construction allowance to Robert Aldana. In turn, Aldana loaned Abby's exist8,000 to finance the construction. Aldana notified Colonial of the assignment by certified mail. Abby's completed the improvement. ignored the assignment and paid Abby's the construction allowance. Aldana filed a lawsuit against Colonial for the exist8,000 due to him pursuant to the assignment, Colonial claimed that the assignment was prohibited by the lease agreement and was therefore void. How would a court most likely rule on whether Aldana was entitled to the exist8,000? a. The court most likely held that Aldana was not entitled to the exist8,000, because he was an third party beneficiary. b. The court most likely held that Aldana was entitled to the exist8,000, because a contract cannot prevent an assignment of the right to receive payment. c. The court most likely held that Aldana was not entitled to the exist8,000, because the contract expressly prohibited assignment. d. The court most likely held that Aldana was entitled to the exist8,000, because he provided notice of the assignment to Colonial
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