Flashcards Studio

An event company contracted to stage a trade show for a manufacturer for $120,000, payable after the show. The contract stated, "Neither party may assign this contract without the other's written consent." Needing financing, the event company signed a document stating, "We assign to Bank our right to receive the $120,000 payment from Manufacturer." Bank immediately notified the manufacturer and sent a copy of the assignment.
The event company completed the show, but some lighting equipment arrived late, causing the manufacturer $9,000 in extra labor costs. After receiving Bank's notice, the manufacturer paid the event company anyway. The event company became insolvent, and Bank sued the manufacturer for the contract price. The manufacturer argues that the assignment was barred by the no-assignment clause, that payment to the event company discharged the debt, and that the $9,000 loss should reduce any recovery.
Analyze Bank's claim against the manufacturer and the manufacturer's defenses.