Honeybrook Pies and Elsie's Bakery enter into a contract in which Honeybrook will deliver 25 rhubarb pies to Elsie's each week for six months. The next week, Elsie assigns its rights with Honeybrook to Namaste Restaurant, a neighboring café, as part of a new contract. Namaste informs Honeybrook that it only serves food that is both vegan and gluten free, so the rhubarb pies will have to be made differently. Honeybrook has never used vegan or gluten free ingredients and to purchase them and find a new recipe would be extremely expensive. Can Elsie's assign the contract to Namaste?

Question

Alice Drake

Business

17 October, 13:10

Honeybrook Pies and Elsie's Bakery enter into a contract in which Honeybrook will deliver 25 rhubarb pies to Elsie's each week for six months. The next week, Elsie assigns its rights with Honeybrook to Namaste Restaurant, a neighboring café, as part of a new contract. Namaste informs Honeybrook that it only serves food that is both vegan and gluten free, so the rhubarb pies will have to be made differently. Honeybrook has never used vegan or gluten free ingredients and to purchase them and find a new recipe would be extremely expensive. Can Elsie's assign the contract to Namaste?

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Answers (1)

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Aditya Vazquez · Answer 1

The answer is: NO

Explanation:

Elsie's Bakery can not assign its contract with Honeybrook Pies to Namaste Restaurant because Namaste wants to substantially change Honeybrook's obligations.

Namaste is requiring a different product form Honeybrook, so the contract terms don't apply with them. If Namaste would have required the same product as Elsie, then the contract could have been assigned to them.