Unformatted text preview: Rosenbergs sued Son and Pratt for payment of the balance due ($17,326.24) under the original contract for the sale of the Dairy Queen. The trial court dismissed the Rosenbergs claims, finding that Pratt was a guarantor and that the second assignment to Merit, Merits pledging of the business assets as collateral for a loan, and other actions accomplished without Pratts knowledge were sufficient alterations to the original contract to exonerate her. The Rosenbergs appealed. ISSUE: May rights of a contract be assigned to a third party when a consent to assignment clause is not signed by the obligatee? DECISION: Unknown. REASONING: The appellate court stated that the trial court erred by applying guaranty law to the dispute. The court decided that the case be sent back to the trial court for further fact finding to determine whether the Pratt-Son agreement constituted an assignment of the contract....
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- Spring '09
- Appellate court, Dairy Queen, Rosenbergs, Mary Pratt