Commentary on Sections Part 1 – Assignation Protection of debtors Section 13 – Performance in good faith where claim assigned subject to condition
77.This section protects debtors who do not know that an assignation document is subject to a condition, or who mistakenly believe the condition has been satisfied. Although section 15(8) and (9) of the Act grants an information-gathering right to debtors in respect of conditions, debtors are not required to be on guard against conditional assignations.
78.Subsection (1) sets out the criteria which must be met in order for the protection in subsection (2) to apply:
79.Subsection (2) provides that the debtor is discharged from the claim (or part) to the extent of the performance to the assignee. This also extends to co-debtors (see paragraph 65 of these Notes).
80.Subsection (3) applies the rules set out in section 10(3) here too. See paragraph 66 of these Notes.