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Contracts Keyed to Farnsworth
Chemical Bank v. Rinden Professional Association
Facts
The Defendant contracted with Intertel to install an office telephone system. The contract required the Defendant to make monthly payments. The Defendant received notice that the Plaintiff intended to purchase the payment rights from Intertel. The Defendant assented to the assignment of the lease by signing an agreement with the Plaintiff that contained a waiver clause stating that the Defendant’s obligation to pay the plaintiff “shall be absolutely unconditional and shall be payable whether or not the Lease is terminated,” and the promise to pay cannot be defeated by any defense, set-off, or counterclaim. After three years of payments to the Plaintiff, the phone system malfunctioned and the Defendant replaced it and ceased making payments to the Plaintiff. This lawsuit ensued.
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