Alpha Inc. has dealt business with Bravo Corporation for 5 years. All through the years, Alpha accumulated an indebtedne

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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 debtor’s consent is not essential for the validity
of the assignment.