Garth's Imports sold a car to Wally on credit for $30,000. Garth assigned to Cassandra all of his rights to receive money from Wally. Cassandra did not inform Wally of the assignment. Therefore, Wally continued to make the next three payments directly to Garth. Shortly thereafter, Garth left the country with the money. If Cassandra sues Wally for the missing three payments

A. Cassandra will not be able to collect the money from Wally.
B. Wally is not liable for the three payments because an assignment is not valid unless the obligor is notified.
C. Wally is liable for the three payments because Cassandra paid consideration for the assignment rights.
D. Wally cannot raise the defense of previous payment.


Answer: A

Business

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