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0 tracked cards Contracts

A caterer assigned to a bank its right to receive $25,000 from a hotel after a banquet. Before the hotel received notice of the assignment, the caterer breached part of the banquet contract, causing the hotel $4,000 in damages. After receiving notice, the hotel refused to pay the bank the full $25,000.
Which statement best describes the hotel's defense against the bank?

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The assignee is liable for every duty of the assignor merely by receiving the payment right. The obligor may assert only defenses that arose after notice of the assignment. The obligor may assert against the assignee a defense or setoff that arose from the assigned contract before the obligor received notice of the assignment. The obligor loses all defenses once the assignor and assignee sign the assignment.

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