Caleb, operator of a window-washing business, dictated a letter to his secretary addressed to Apartments, Inc., stating,

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Caleb, operator of a window-washing business, dictated a letter to his secretary addressed to Apartments, Inc., stating,

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Caleb, operator of a window-washing business, dictated a letter to his secretary addressed to Apartments, Inc., stating, “I will wash the windows of your apartment buildings at $4.10 per window to be paid upon completion of the work.” The secretary typed the letter, signed Caleb’s name, and mailed it to Apartments, Inc. Apartments, Inc., replied, “Accept your offer.” Caleb wrote back, “I will wash them during the week commencing July 10 and direct you to pay the money you will owe me to my son, Bernie. I am giving it to him as a wedding present.” Caleb sent a signed copy of the letter to Bernie. Caleb washed the windows during the time stated and demanded payment to him of $8,200 (2,000 windows at $4.10 each), informing Apartments, Inc., that he had changed his mind about having the money paid to Bernie. What are the rights of the parties?

Explanation & AnswerSolution by a verified expert

Explanation

Individual C has accepted to clean the Item W at the rate of $4.10 per Item W for the company A and has assigned the payment from the proceeds to Individual B. The written letter is sent to both the parties.Hence, the assignment is irrevocable, and the signed writing cannot be revoked.

Verified Answer

Based on the requirements of the assignment clause, it is a gratuitous assignment between Individual C and Company A. Gratuitous assignment is given to Individual B and the same has been informed to Company A, which makes the assignment irrevocable. Effective delivery of written assignment is made by Individual C, which specifically mentions to transfer the amount to Individual B.The letter also consists of clear directions for payment and is signed by Individual C.

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