Assignments

Assignment

No consideration is required. Gratuitous assignments are effective. May or may not be a revocable.

What Rights can be assigned?

Generally all rights can be assigned except: 1. Assignments that would substantially change obligors duty/risk a) personal service contracts (painter lawyer physician or architect). 2. Requirement/output contracts unless amount determined good faith and not unreasonably disproportionate.

Gratuitous assignments are generally revocable except:

If obligor has already performed, delivery token chose, writing, estoppel reliance.

Assignee vs. assignor

Implied warranties ( restatement 333) where assignment is for consideration: 1) right assigned actually exist and is not subject to any defense is not a parent at time of assignment. 2) Assignor has a right to assign has made no prior assignment of the same right and will do nothing in the future to so. 3) any writing evidencing the right delivered or exhibited to assignee to induce huge accept assignment is genuine.

Assignment

Transfer of rights of the contract. Happens after the contract has been formed. Any generally accepted words of transfer will suffice. Generally no writing is required but there are exceptions such as assignment of interest in land.

Parties

1. Assignor: One who assigns or transfers a right. 2. Assignee: One who receives rights. 3. Obligor: One that is obligated to perform. Extinguishes right in assignor and sets up the rights in the assignee~ assignee has direct rights against the Obligor.

Requirements for an effective assignment

1. Present words of assignment must be used. 2. Consideration is not required. 3. Gratuitous assignments generally revocable.

Right and liabilities of the parties.

Assignee vs. Obligor A) may enforce right against obligor directly. В) May be subject to any rights that obligor had against assignor except for defenses that are unrelated to the contract. C) obligor cannot use defenses assigned or has against assignee. D) once obligor gets notice of the Assignment he must pay assignee or pay assignor at his peril.

When our assignments revocable/ irrevocable?

Assignments for consideration are irrevocable. A) an irrevocable assignment removes the right from the assignor but not the power except assignment accompanied by delivery of token chose terminates power and right.

Gratuitous assignment maybe revoked by:

Death of assignor, bankruptcy of assignor, notice to either assignee or obligor, assignor takes performance directly from obligor, subsequent assignment of same rights by assignor to another.

Assignment of future rights

Future rights refers to rights that are expected to arise under and an existing contract or a continuing business relationship with you to contact or business relationship. At common law, Rights under future contract or a future business relationship are not assignable.

Contract prohibition

Prohibition on assignmen of contractual right generally doesn't bar the assignment but gives obligor action for breach of contract ( assignor has the power but not the right to assign).