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zainwadi zainwadi
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6 years ago
Assignment. Abby's Cakes on Dixie, Inc, agreed in a lease contract to lease space in a shopping center from Colonial Palms Plaza, Inc The contract included a provision in which Colonial agreed to pay Abby's a construction allowance of up to 11,250 after Abby's had satisfactorily completed certain improvements to the rented premises. The contract also contained a clause stating that Abby's agreed not to assign, mortgage, pledge, or encumber this Lease without first obtaining the written consent of Colonial and that any such assignment, encumbrance or subletting without such consent shall be void. Prior to the completion of the improvements, Abby's assigned its right to receive the first 8,000 of the construction allowance to Robert Aldana (without first obtaining Colonial's consent). In return, Aldana loaned Abby's 8,000 to finance the construction. Aldana notified Colonial of the assignment by certified mail. After Abby's had completed the improvements to the rented premises, Colonial ignored the assignment and paid Abby's the construction allowance. In Aldana's suit against Colonial for the 8,000 due him pursuant to the assignment, Colonial claimed that the assignment was prohibited by the contract provision and therefore void. Who will win, and why?
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kvilla5kvilla5
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6 years ago
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zainwadi Author
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6 years ago
Thanks
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Yesterday
Helped a lot
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2 hours ago
Thank you, thank you, thank you!
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