Ira owes Jessie $1,000. Kerry owes Ira $1,000. Ira unconditionally assigns to Jessie the right to Kerry's payment. Jessie's right to the $1,000 is subject to the defenses that

Question

Quizplus · Accepted Answer

An assignment of rights transfers the assignor's rights to the assignee. However, the rights transferred are subject to any defenses or setoffs that could have been raised against the assignor before the assignment (unless the assignment is made for value). In this case, Kerry owes Ira $1,000, but Kerry may have defenses against Ira's claim. Therefore, Jessie's right to Kerry's payment is subject to those defenses. The defenses that Jessie had against Ira (choice A) and the defenses that Ira had against Kerry (choice C) are not applicable in this situation.

Ira Owes Jessie $1,000