Andrew Durham was injured in a job-related accident that resulted in a workers' compensation settlement agreement with the employer's insurance carrier, Traveler's Indemnity Company. The settlement agreement required Traveler's to pay Durham $2500 per
month for the rest of his life. To finance its obligation, Traveler's purchased an annuity in its name. The settlement agreement required Traveler's approval or consent prior to an assignment of the annuity payments. Durham later decided to open a business and went to a credit union for a $214,000 loan. The credit union loaned the money, taking a security interest in Durham's monthly annuity payments. Traveler's consent was never secured. Was this a valid assignment?
Assignments can be made unless: (a) the assignment would substantially change the obligor's rights and duties; or (b) the assignment is forbidden by law or public policy; or (c) assignments are validly precluded by the contract itself. The original contract between Durham and Traveler's required Traveler's written consent to make a valid assignment. A majority of states would say the assignment is therefore not valid and the debt to the Credit Union is unsecured and dischargeable in bankruptcy.
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In a ______________________________ all the partners have unlimited liability.
Fill in the blank(s) with the appropriate word(s).