Monica owns a landscaping business and enters into a written…
Questions
Mоnicа оwns а lаndscaping business and enters intо a written service contract with Oakland Apartments to perform weekly lawn maintenance for $2,000 per month. After three months, Monica assigns her right to receive future payments under the contract to her friend Jill to help Jill with some cash flow issues. Separately, Monica also holds a promissory note (that meets the requirements of a negotiable instrument) from a previous client, made payable to the order of Monica, promising to pay $3,000 on demand. Monica endorses the note by signing the back, Pay to Jill /s Monica and negotiates it to Jill as payment for trees. Jill took the promissory note for value, in good faith, and without knowing of any other claims of ownership to the note or defenses to payment on the instrument. Jill is a holder in due course of the promissory note. A month later, Oakland Apartments refuses to pay Jill under the service contract, claiming that Monica failed to perform work as agreed. Meanwhile, the client who issued the promissory note also refused to pay Jill, claiming Monica never provided the agreed service. Which of the following statements best describes Jill's rights regarding whether Jill can receive payment under the service contract and the promissory note?