EQUITABLE REMEDIES Question 1 - Sam orally agrees to pay Lorena to plant and har
ID: 444326 • Letter: E
Question
EQUITABLE REMEDIES
Question 1- Sam orally agrees to pay Lorena to plant and harvest a quarter of Sam’s farm acreage for four soybean seasons. After Lorena prepares the land and plants the first crop, Sam says that their deal is off. Can Lorena recover? Using what theory? Explain fully.
ASSIGNMENT
Question 2 - Paula borrows $5,000 from Quality Auto Sales to buy a car. When Paula does not pay the loan or return the car, Quality wants to transfers the right to the payment to Rapid Collection Agency. Rapid agrees to pay Quality for this right, but for a price that is less than the amount owed. Can Quality transfer this right to Rapid without Paula’s consent? If so, and Quality committed fraud in the deal with Paula, could Paula legitimately refuse to pay Rapid? Explain.
Explanation / Answer
Yes Lorena can recover through the quasi contract. A quasi contract is a legal agreement created by the courts between two parties who did not have a previous obligation to each other. A normal contract requires two parties to consent to mutually agreeable terms. Under a quasi-contract, neither party is originally intended to create an agreement. Instead, an arrangement is imposed by a judge to rectify an occurrence of unjust enrichment.
Quality transfers the rights of Paula’s payments in an assignment to Rapid. The parties in an assignment are the assignor, the assignee and the obligor. The party originally entitled to the payment is the assignor (Quality), the party who is making the payment is the obligor (Paula), and the party who receives the right to the payment is the assignee (Rapid). The obligor’s consent is not necessary for an effective assignment. On an assignment, the rights of the assignor are extinguished, and the assignee has the right to demand the performance of the obligation. The assignee takes only those rights which the assignor originally had, however, subject to the defenses that the obligor has against the assignor. Thus, if Quality commits a fraud , Paula can raise this fraud as a defense against payment to Rapid.
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