1
Question
Assignment of contractual obligation takes place ___________.
Assignment of contractual obligation takes place ___________.
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Solution
The correct option is C Both
- An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” In contracts, generally assignment is done for the persons incompetent to contract especially minor, dead people as well as people declared insolvent by the court.
- The general rule is that when a person becomes insolvent, the assignment of his rights and duties takes effect by operation of law.
- A promise depending upon personal consideration terminates on death of the promisor. Section 37 of the Indian Contract Act provides that in case of death of promisors before performance of their promise, representatives of the promisors are bound to perform the promise. Hence assignment of obligations takes place.
- An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” In contracts, generally assignment is done for the persons incompetent to contract especially minor, dead people as well as people declared insolvent by the court.
- The general rule is that when a person becomes insolvent, the assignment of his rights and duties takes effect by operation of law.
- A promise depending upon personal consideration terminates on death of the promisor. Section 37 of the Indian Contract Act provides that in case of death of promisors before performance of their promise, representatives of the promisors are bound to perform the promise. Hence assignment of obligations takes place.
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