An assignee's rights are subject to the defenses that the obligor has against the assignor.

Question

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This means that the assignee (the person or entity who receives the assignment) cannot have more rights than the assignor (the person or entity who originally owned the rights being assigned) had. If the obligor (the person who owes the obligation being assigned) has any defenses against the assignor (such as a dispute over payment or performance), those same defenses can be used against the assignee.

An Assignee's Rights Are Subject to the Defenses That the Obligor