Question

Assignment of contractual obligation without consideration is _______________.

• A. Revocable
• B. Irrevocable
• C. Valid contract
• D. Illegal contract

Answer 1

Answer: (A)

Revocable

• Unless assignment is prohibited in a contract, a party may generally assign the rights under the contract to a third party without the consent of the other party. A person cannot usually assign the obligations under a contract. Contracts that are of a personal nature i.e. where it matters that a certain individual performs the contract, cannot and would not usually be assigned.
  
• In an assignment, valuable consideration is considered an essential element to support a promise to an assignment. The assignee has given consideration for the assignment i.e., there is a contract between the assignor and the assignee in which the assignment is the assignor’s consideration, and then the assignment is not revocable without the assignee’s consent.