When is an assignment valid and enforceable against an obligor?
A)from the moment the assignment is made
B)from the moment the obligor signs the contract
C)from the moment the assignee gives consideration
D)from the moment the obligor is notified of the assignment

Question

Quizplus · Accepted Answer

An assignment is valid and enforceable against the obligor only when the obligor is notified of the assignment. Until the obligor is notified, the assignment is not effective and the obligor may continue to perform the obligation to the original assignor. Once the obligor is properly notified, the obligor can no longer perform the obligation to the assignor and must perform the obligation to the assignee. Therefore, option D is the correct answer.

When Is an Assignment Valid and Enforceable Against an Obligor