Before notice of assignment, the obligor had a valid defence against the assignor. May it ordinarily be raised against the assignee?
- A
No, assignment destroys every defence.
- B
Only after a new contract
- C
Yes, the assignee takes subject to that defence.
- D
Only if the assignee agrees.
View answer and explanation
Correct answer: C. Yes, the assignee takes subject to that defence.
C applies the final paragraph.
Source note: Original LexMentor CLAT UG Batch 22, prepared in the official passage-based format.