The statement that an assignee "takes subject to the equities" between the parties means that
A)for the assignment to be enforced it must be an equitable assignment.
B)the assignee gets no greater rights against the debtor/promisor than the assignor had.
C)the debtor/promisor can enforce any rights it has against the assignor against the assignee.
D)the court must decide whether it is fairer for the assignor or the assignee to be paid under the assignment.
E)before an assignee can enforce an assignment against the debtor/promisor it must demonstrate fairness.

Question

Quizplus · Accepted Answer

When an assignee takes subject to the equities, it means that the assignee's rights are subject to any defenses or claims that the debtor/promisor could have raised against the assignor. Therefore, the assignee does not have greater rights than the assignor had, and the debtor/promisor can enforce any rights against the assignee that it could have enforced against the assignor. The other options are incorrect because they do not accurately describe the concept of taking subject to the equities.

The Statement That an Assignee "Takes Subject to the Equities