Social Studies, 08.04.2020 00:00 ashleypere99

Abby's Cakes, Inc., leased space in a shopping center from Colonial Palms Plaza, Inc. The lease contained a clause that stated that Colonial would pay a construction allowance of up to $11,250 to Abby's if Abby's would complete some improvements to the premises. The lease also contained a clause that stated that any "assignment, mortgage, pledge, or encumbrance" made without Colonial's written consent would be void. Abby's began work on the improvements and, without obtaining Colonial's consent, assigned its right to the first $8,000 of the construction allowance to Robert Aldana. Aldana in turn loaned Abby's $8,000 to finance the construction. Aldana notified Colonial of the assignment by certified mail. Abby's completed the improvements. Colonial ignored the assignment and paid Abby's the construction allowance. Aldana filed a lawsuit against Colonial for $8,000 due to him pursuant to the assignment. Colonial claimed that the assignment was prohibited by the lease agreement and was therefore void. The court most likely held that Aldana was:

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Abby's Cakes, Inc., leased space in a shopping center from Colonial Palms Plaza, Inc. The lease cont...

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