ABC Builders Inc. owes $500000 to Alpha Corp. one of its suppliers. ABC Builders has a contract with Mike and Linda Johma to construct a house for $500000 and wishes to assign its right to payment under this contract to Alpha Corp. in order to pay its debt. Which statement best describes this proposed transaction?

Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a

The assignment to Alpha Corp. will be invalid unless Mike and Linda Johma consent.

b

If this transaction takes place, Mike and Linda Johma will lose the right to sue ABC Builders Inc. for breach of contract should ABC Builders Inc. fail to build the house as agreed to in their contract.

c

ABC Builders Inc. cannot assign its contractual duties or obligations to Alpha Corp. without agreement of the Johmas but ABC Builders Inc.'s contractual rights can be transferred without any such permission being required.

d

If the assignment takes place and ABC Builders Inc. then breaches the contract to build the housethe Johmas will still have to pay Alpha Corp. $500000.