John, a contractor, entered into a contract with Peter to build for Peter an addition to Peter's house. John assigned the contract to Bill. John was going out of the City for a while and made the assignment to Bill without requesting anything in return. In other words, Bill gave John no consideration for the assignment. Peter refused to honor the assignment claiming that because Bill gave John nothing for the assignment, the assignment lacked consideration and he, Peter, did not have to honor the assignment.

1. Must Peter honor the assignment? Explain thoroughly.

2. Could John have repudiated the assignment before Bill built the addition? Why or why not?

3. Discuss and explain the parties to an assignment.