Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Weyburn Farmers' Co-op contracted to sell a carload of grain to Mr. Takemori for $2,000. The co-op assigned, in writing. Its contractual right to

image text in transcribed
The Weyburn Farmers' Co-op contracted to sell a carload of grain to Mr. Takemori for $2,000. The co-op assigned, in writing. Its contractual right to receive the $2,000 to the Royal Bank to which it was indebted. The Royal Bank gave written notice of the assignment to Takemors Unknown to the buyer and the seller, at the time of the contract the grain had been destroyed because of a train derailment caused by the negligence of the train conductor. On these facts, which of the following is true? C d The Royal Bank will receive nothing from Takemor, because Takemori owes nothing to the co-op Because of the conductor's negligence, the railroad will have to honour Takemort's contract with the Royal Bank. The Royal Bank, the assignee, will receive the $2,000 because it could prove privity of contract with Takemori The Royal Bank will receive $2,000 from Takemor because there was an assignment in writing and That is the sole test for determining whether the assignee will be paid the amount of the assignment. The Royal Bank will receive part payment from Takemori

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

1. Explain how business strategy affects HR strategy.

Answered: 1 week ago