Author Question: Directors may vote by proxy when they are not able to be present for a meeting. Indicate whether ... (Read 188 times)

pepyto · **on:** Jun 24, 2018

Directors may vote by proxy when they are not able to be present for a meeting.
Indicate whether the statement is true or false

Question 2

Give an example of an assignment of rights and explain the relationship of the parties.

bfulkerson77 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

FALSE

Answer to Question 2

An assignment of rights is the voluntary transfer to a third party of rights arising from a contract. The example used in the textbook was as follows: Ann promises to sell Bart an automobile for which Bart promises to pay 10,000 in monthly installments over the next three years. Ann's right under the contract is to receive payment from Bart, whereas Ann's duty is to deliver the automobile. Bart's right is to receive the automobile; his duty is to pay for it. If Ann were to transfer her right under the contract (the installment payments due from Bart) to Clark for 8,500 in cash, this would constitute a valid assignment of rights. In this case, Ann would be the assignor, Clark would be the assignee, and Bart would be the obligor.