Legal Question in Business Law in Illinois

Is an Assignor still liable to an Obligor?

I a person assigns thier interests, rights, etc. to a contract over the another, and that assignee defaults, is the original assignor still liable for damages to the obligor? (Assume that the obligor was given notice of the assignment.)


Asked on 6/13/07, 5:11 pm

1 Answer from Attorneys
Noelle Ansley Noelle Ansley

Re: Is an Assignor still liable to an Obligor?

If the assignor assigned his interests to the assignee by a written instrument, there should be language in that document that indicates which party will be liable in the event of a default. If the interest was assigned by oral agreement, the assignor is likely going to be left holding the bag. It really depends on your situation, the interest assigned, the method by which it was assigned, etc.

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Answered on 6/14/07, 1:09 pm


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