Dealing with multiple assignments for consideration: which prevails?

Dealing with multiple assignments for consideration: which prevails?

• A. The first assignee for consideration prevails over subsequent assignees (and over prior gratuitous assignees)
• B. The last assignee for consideration prevails over earlier ones
• C. The assignee with the strongest credit history prevails
• D. The assignee who first uses the payment method prevails

Answer: (B)

When multiple transfers of a debt or claim are made for value, the one who ends up with the rights last—the most recent assignee—has the authoritative title to enforce the debt. Each valid assignment passes the entire right to the next holder in the chain, so the debtor’s obligation runs to the current holder. Paying that last assignee satisfies the obligation and effectively discharges the claim against the debtor, with earlier assignees’ rights having been transferred along the chain. This avoids competing demands and double collection. In this setup, the other options don’t fit. The first assignee would create overlapping claims and friction as the chain moves forward; the assignee with the strongest credit history isn’t what determines rights in a chain of assignments; and who first used a payment method isn’t relevant to who holds the rights.

When multiple transfers of a debt or claim are made for value, the one who ends up with the rights last—the most recent assignee—has the authoritative title to enforce the debt. Each valid assignment passes the entire right to the next holder in the chain, so the debtor’s obligation runs to the current holder. Paying that last assignee satisfies the obligation and effectively discharges the claim against the debtor, with earlier assignees’ rights having been transferred along the chain. This avoids competing demands and double collection.

In this setup, the other options don’t fit. The first assignee would create overlapping claims and friction as the chain moves forward; the assignee with the strongest credit history isn’t what determines rights in a chain of assignments; and who first used a payment method isn’t relevant to who holds the rights.