Pix borrowed $80,000 from Null Bank. Pix gave Null a promissory note and mortgag

Question

Pix borrowed $80,000 from Null Bank. Pix gave Null a promissory note and mortgage. Subsequently, Null assigned the note and mortgage to Reed. Reed failed to notify Pix of the assignment. If Pix pays Null pursuant to the note, Pix will Select one a. Be primarily liable to Reed for the payments made to Null O b. Be secondarily liable to Reed for the payments made to Null. c. Not be liable to Reed for the payments made to Null because Reed's failure to notify Pix of the assignment makes the assignment invalid. d. Be discharged from any further obligation because payment was made before he receive notice of the assignment. Oe. Be liable to Reed for the payments made to Null

Explanation / Answer

The correct answer is option C, i.e. Pix will not be liable to Reed for the payments made to Null because Reed's failure to notify Pix of the assignment will make the assignment invalid. It is the job of the assignee which is in this case, Reed, to notify the obligor, i.e. Pix of the assignment between Null and Reed.

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