New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Under the Factoring Regulation Act any agreement made,

    after notice of the assignment between the assignor and the debtor that affects the assignee's rights, shall be ineffective as against the assignee unless_____________
    A The assignor consents to it Correct Answer Incorrect Answer
    B The assignee consents to it Correct Answer Incorrect Answer
    C The receivable is not fully earned by performance and either the modification is provided for in the original contract or, in the context of the original contract, a reasonable assignee would consent to the modification Correct Answer Incorrect Answer
    D Either a or c Correct Answer Incorrect Answer
    E Either b or c Correct Answer Incorrect Answer

    Solution

    Section 17.  Modification of original contract: (2) Any agreement made, after notice of the assignment between the assignor and the debtor that affects the assignee's rights, shall be ineffective as against the assignee unless,— (a) the assignee consents to it; or (b) the receivable is not fully earned by performance and either the modification is provided for in the original contract or, in the context of the original contract, a reasonable assignee would consent to the modification.  

    Practice Next