Able Company contracted to sell to Baker Company 400 barrels of chemical C for $1200. Able Company assigned the entire $1200 in writing to Mr. Long, who sent a letter informing Baker Company of the assignment and directing Baker Company to forward money to him instead of Able Company. Unbeknown to both companies, at the time of the contract, the ship carrying the chemical had sunk and all cargo was lost. Which of the following is true?
◦ Mr. Long will receive part payment.
◦ Since Able Company has breached the contract, it pays compensation for the damages of both Baker Company and Mr. Long.
◦ The assignment to Mr. Long would fail to be a statutory assignment.
◦ Mr. Long, the assignee, will receive $1200 from Baker Company.
◦ Mr. Long will receive nothing from Baker Company because nothing is owed to Able Company.
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