Question

• Donna owes $10,000 to Barclays Bank. Harvey Hedge Fund is buying Donna’s debt to Barclays Bank for $8,000. Is Barclays Bank assigning its rights or delegating its duties?
• What is each party’s role (i.e., who is the obligor, obligee, assignor, assignee, delegator, or delegatee) - your answer depends on how you answered Question 4.

Answer 1

Kindly refer this solution bearing in mind, legal knowledge, since it requires a precise techical understanding of the relevant terms.

1. Donna is an Obligor since she owes a duty of $10,000 to Barclays Bank. When any act of owning comes into picture, it is automatically legal bound as it is a deemed admission that something needs to be paid. When something is legal bound, it becomes a duty. Whereas a right is something which you may or may not excercise. Example: It is a duty for all citizens to stand by their Country in tough times. On the other hand, you may/may not exercise your right to hold a protest.

2. Barclays Bank is the Obligee as they has the right to receive the obligor’s performance of $10,000.

3. After transferred her "duties" to the of $8,000 to Harvey Hedge Fund, Donna is termed as a Delegator.

4. Harvey Hedge Fund is the Delegatee party since Donna has transferred her "duties" to the tune of $8,000. So now Harvey Hedge Fund is liable to pay the due amount.

5. Barclays Bank is assigning its rights since they are an Obligee. An Obligee in all conditions has a right but they are not duty bound. Also since they are an intended 3rd party beneficiary they have "rights".

6. There are no assignors or assignee in this case since no assignment of any "rights" has been made.