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Meaning of assignment

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Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2011 i need a help to understand the meaning of assignment in mercantile law in this topic in assignment the benefit of a contract can only be assigned but not the liability thereunder. because the liability is assigned,a third party gets involved in it.thus a debtors cannot relieve himself of his creditors by assigning to someone else his obligation to repay the debt.

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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07 November 2011 Assignment in ordinary words means transfer. A Creditor can assign his debtors to any person.

E.g. A gives loan to B for one year. A needs money in 2 months, he cannot recover from B, however he can assign this debt to C and take money from him. Now, on maturity date, C will recover amount from B.

In above case, B cannot assign his debt to C, because only assets can be transferred and not liability.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

17 November 2011 THANK YOU SIR

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