Question
Alpha Inc. has dealt business with Bravo Corporation for 5 years. All through the years, Alpha accumulated an indebtedness of P1M with Bravo. Upon demand,
Alpha Inc. has dealt business with Bravo Corporation for 5 years. All through the years, Alpha accumulated an indebtedness of P1M with Bravo. Upon demand, Alpha paid Bravo by check the amount owed which was however dishonored for insufficiency of funds. For and in consideration of P800,000, Bravo assigned the credits to Charlie Inc. who brought suit against Alpha for the recovery of the amount owed which later on was moved for dismissal by Alpha on the ground that Alpha has not agreed for subrogation. Decide.
A) Alpha is not correct because this is a case of an assignment of credit. However, an assignment of credit needs the consent of the debtor.
B) This is a valid assignment of credit. However, Charlie did not acquire a right to sue in his own name.
C) Alpha Inc, is correct. This is a case of subrogation which needs its consent being the debtor.
D) Alpha is not correct because this is a case of an assignment of credit. The debtors consent is not essential for the validity of the assignment.
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