Elyss has a right under the contract to receive a payment in three installments of $5,000 from Maile. After the first payment, Elyss transfers Elyss’s rights to collect the remaining $10,000 to Rihann in exchange for a lump-sum payment of $6,000. Identify the parties to this assignment. Choose two answers.
A. Elyss is the assignor.
B. Rihann is the assignee.
C. Maile is the assignor.
D. Maile is the assignee.
Answer (1)
To determine the parties involved in the assignment of rights in the given contract situation, let's first understand the basic terms:
Assignor : This is the party who transfers rights or benefits under a contract to another party. In this case, Elyss is the original holder of rights to receive payments from Maile.
Assignee : This is the party who receives the rights or benefits under a contract from the assignor. Here, Rihann is the party who Elyss transfers her rights to, meaning Rihann has the right to receive the remaining payments from Maile.
Based on this understanding, we can identify the parties as follows:
Elyss is the assignor because she is the one transferring her rights to collect money to Rihann.
Rihann is the assignee because she is the one receiving the rights from Elyss.
Therefore, the correct choices are:
Elyss is the assignor.
Rihann is the assignee.
In summary, Elyss has transferred her rights to collect the remaining $10,000 from Maile over to Rihann, in return for a lump-sum payment of $6,000. This transfer makes Elyss the assignor and Rihann the assignee.
