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11. Assuming that Article 9 of the Uniform Commercial Code does NOT apply to either of the assignments in this situation, which of the following is a correct statement of the parties' rights and liabilities?
A patient owed a physician $25,000 for professional services. The physician orally assigned this claim to her adult daughter as a wedding gift. Shortly thereafter, on suffering sudden, severe losses in the stock market, the physician assigned by a signed writing the same claim to her stockbroker in partial satisfaction of advances legally made by the stockbroker in the physician's previous stock-market transactions. Subsequently, the patient, without knowledge of either assignment, paid the physician the $25,000 then due, which the physician promptly lost at a horse track, although she remains solvent.
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The physician made a gratuitous assignment of the $25,000 right to payment to her daughter, which the physician revoked when she assigned the same contract right to the stockbroker. Because the stockbroker did not give the obligor (the patient) notice of the assignment, the patient could (and did) discharge her obligation under the contract by paying the physician directly. Because the stockbroker never received payment, however, the physician's debt to the stockbroker is still enforceable.
A is incorrect. The assignment to the daughter was revoked when the physician assigned the right to the stockbroker.
B is incorrect. The patient did not receive notice of the assignment, and therefore effectively discharged her obligation by paying the physician directly.
C is incorrect. The daughter cannot recover the $25,000 from the physician because the assignment was revoked.