Asked by Ethan Calura on May 05, 2024

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When no consideration is given for an assignment,creditors of the assignor may have the assignment rescinded on the grounds that it violates the equal dignities rule.

Equal Dignities Rule

The legal rule that provides that when a party appoints an agent to negotiate an agreement that must be in writing, the appointment of the agent must also be in writing.

Consideration

In contract law, something of value exchanged between parties that is required for the formation of a legal contract.

Assignment

The transfer of a contract right from one person to another.

  • Gain insight into the legal framework that oversees the processes of assignment and delegation in contract law.
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Verified Answer

CS
Challamalla Shiva KumarMay 11, 2024
Final Answer :
False
Explanation :
The equal dignities rule pertains to the requirement that if an original contract was required to be in writing, then any assignment of that contract must also be in writing. It does not relate to the consideration given for an assignment or the rights of creditors to have an assignment rescinded. The issue of rescinding an assignment due to lack of consideration would more directly relate to the principles of contract law, specifically the requirement of consideration for a contract to be valid, rather than the equal dignities rule.