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

Question

Quizplus · Accepted Answer

When an assignee takes subject to the equities, it means that the assignee only acquires the same rights that the assignor had. The assignee is subject to any defenses or claims that the debtor/promisor could have asserted against the assignor if the assignment had not taken place. Therefore, the assignee takes subject to any equities or claims that arose before the assignment.

The Statement That an Assignee "Takes Subject to the Equities