An obligor may assert rights of setoff arising out of entirely separate matters that he might have against the assignor, as long as the matters arose before he had notice of the assignment.

Question

Quizplus · Accepted Answer

An obligor can assert rights of setoff for matters that arose before the notice of assignment because, until notified, the obligor's rights and obligations remain unchanged and can include defenses or claims against the assignor that are unrelated to the assigned obligation.

An Obligor May Assert Rights of Setoff Arising Out of Entirely