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MMLU / The owner and operator of a pizza restaurant entered into a written contract…

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question

The owner and operator of a pizza restaurant entered into a written contract with an employee that provided that the employee would be employed as manager of the restaurant for a period of three years. The contract provided that the owner was to pay the employee a salary of $2,000 per month, payable one-half to the employee and one-half to the employee's elderly mother. The contract further stipulated that "the monies due hereunder shall not be assignable. "When the mother learned of this contract, she wrote a letter to the owner stating, "Kindly pay the amounts due me under your contract with my son directly to the nursing home, where I am presently a patient. " During the first year of the contract, the owner paid $1,000 per month to the employee and 1,000permonthtothenursinghome.Afteroneyear,anotherpizzarestaurantopenedacrossthestreet,creatingcompetition.Duringthenextfewmonths,businesssteadilydeclined.Asaresultofthelossinbusiness,theownerinformedtheemployeethatunlessheagreedtotakeacutinhissalary,theemployeewouldbefired.Reluctantly,theemployeeorallyconsentedtoasalaryreductionof1,000 per month to the nursing home. After one year, another pizza restaurant opened across the street, creating competition. During the next few months, business steadily declined. As a result of the loss in business, the owner informed the employee that unless he agreed to take a cut in his salary, the employee would be fired. Reluctantly, the employee orally consented to a salary reduction of 500 per month. By the terms of their oral agreement, the owner promised to continue to pay 1,000totheemployee,buttopayonly1,000 to the employee, but to pay only 500 per month to the nursing home. If the nursing home brings suit against the owner for breach of contract, who is most likely to prevail?
Plain-text mathematical notation (without MathML)
The owner and operator of a pizza restaurant entered into a written contract with an employee that provided that the employee would be employed as manager of the restaurant for a period of three years. The contract provided that the owner was to pay the employee a salary of $2,000 per month, payable one-half to the employee and one-half to the employee's elderly mother. The contract further stipulated that "the monies due hereunder shall not be assignable. "When the mother learned of this contract, she wrote a letter to the owner stating, "Kindly pay the amounts due me under your contract with my son directly to the nursing home, where I am presently a patient. " During the first year of the contract, the owner paid $1,000 per month to the employee and 1,000permonthtothenursinghome.Afteroneyear,anotherpizzarestaurantopenedacrossthestreet,creatingcompetition.Duringthenextfewmonths,businesssteadilydeclined.Asaresultofthelossinbusiness,theownerinformedtheemployeethatunlessheagreedtotakeacutinhissalary,theemployeewouldbefired.Reluctantly,theemployeeorallyconsentedtoasalaryreductionof500 per month. By the terms of their oral agreement, the owner promised to continue to pay 1,000totheemployee,buttopayonly500 per month to the nursing home. If the nursing home brings suit against the owner for breach of contract, who is most likely to prevail?
Original LaTeX notation
The owner and operator of a pizza restaurant entered into a written contract with an employee that provided that the employee would be employed as manager of the restaurant for a period of three years. The contract provided that the owner was to pay the employee a salary of $2,000 per month, payable one-half to the employee and one-half to the employee's elderly mother. The contract further stipulated that "the monies due hereunder shall not be assignable. "When the mother learned of this contract, she wrote a letter to the owner stating, "Kindly pay the amounts due me under your contract with my son directly to the nursing home, where I am presently a patient. " During the first year of the contract, the owner paid $1,000 per month to the employee and $1,000 per month to the nursing home. After one year, another pizza restaurant opened across the street, creating competition. During the next few months, business steadily declined. As a result of the loss in business, the owner informed the employee that unless he agreed to take a cut in his salary, the employee would be fired. Reluctantly, the employee orally consented to a salary reduction of $500 per month. By the terms of their oral agreement, the owner promised to continue to pay $1,000 to the employee, but to pay only $500 per month to the nursing home. If the nursing home brings suit against the owner for breach of contract, who is most likely to prevail?

choices

  1. The owner, because the mother's assignment to the nursing home was void as violative of the anti-assignment clause.
  2. The owner, because the agreement between the owner and the employee reduced the owner's obligations to the nursing home.
  3. The nursing home, because the mother's assignment would be enforceable despite the agreement between the owner and the employee.
  4. The nursing home, because the mother's gratuitous assignment was irrevocable.

subject

professional_law

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Source and history

task_id
458a11f8-09d5-5afd-9cf0-313ae6e403e2
task_key
all--test--458a11f8-09d5-5afd-9cf0-313ae6e403e2
task_revision_id
1
config / split
all / test

Official source

initial import