A. Max bought electronic equipment for $120,000 from Crayon on June 10, 2020. Cray guaranteed the equipment to be free from defects for 10 years. The first payment of $10,000 was due July 1, 2020, with a payment of $10,000 due every month after. Shortly after the sale, Cray assigned the contract rights to Zeke for $110,000. Cray did not delegate any duties to Zeke. Zeke notified Max of the assignment on June 15, 2020. The electronic equipment was determined to be defective and thus the sale beached the warranty of merchantability. As a result, Max did not make the July 1, 2020 payment. Zeke claims he is entitled to payment from Max because he did not sell the defective merchandise.

Discuss the rights of Max, Zeke, and Cray.

Answer rating: 100% (QA)

Assuming that Zeke did not assume any duties under the contract when he took the assignment Zeke wou... View the full answer