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MMLU / A distributor agrees to sell 100 tubes of growth hormone to a medical treatment…

Problem

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question

A distributor agrees to sell 100 tubes of growth hormone to a medical treatment center in exchange for $30,000. The contract has many clauses, including one that prohibits generally the assignment of the contract or any of its terms. The distributor assigns its right to receive the funds anyway. Will a court enforce the bar against assignment under these circumstances?

choices

  1. No, a bar of assignment does not apply to the right to receive the funds unless specifically stated.
  2. No, a bar of assignment is an unconstitutional deprivation of due process.
  3. Yes, a contractual provision prohibiting assignments is enforceable in all respects.
  4. Yes, a bar against the right to receive proceeds is a favored restriction unless otherwise stated.

subject

professional_law

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