Rights and obligations of assignee in a contract

Peter Matu, who is 80 years old, is a partner in a manufacturing firm. He intends to transfer his shares to his daughter Mary Kinga but he does not know the rights of an assignee in a partnership.

Advise Peter Matu on the rights and obligations that Mary Kinga would accrue as an assignee

Mary Kinga will accrue the following rights and obligations as an assignee

  • She is entitled to receive the share of profits which the assignor was entitled
  • She receives the share of the assignor in case of dissolution of the partnership.
  • She is not personally liable for the debts of the firm if she is a minor
  • She is entitled to attend meetings of the firm but not to note or contribute in the deliberations.
  • She is not entitled to inspect the books of account of the partnership.
  • She is not entitled to interfere with the management of the firm.

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