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)

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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