case law on assignment

• assignments basic law

Assignments: The Basic Law

The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States.

As with many terms commonly used, people are familiar with the term but often are not aware or fully aware of what the terms entail. The concept of assignment of rights and obligations is one of those simple concepts with wide ranging ramifications in the contractual and business context and the law imposes severe restrictions on the validity and effect of assignment in many instances. Clear contractual provisions concerning assignments and rights should be in every document and structure created and this article will outline why such drafting is essential for the creation of appropriate and effective contracts and structures.

The reader should first read the article on Limited Liability Entities in the United States and Contracts since the information in those articles will be assumed in this article.

Basic Definitions and Concepts:

An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” The legal nature of the assignment and the contractual terms of the agreement between the parties determines some additional rights and liabilities that accompany the assignment. The assignment of rights under a contract usually completely transfers the rights to the assignee to receive the benefits accruing under the contract. Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court , 35 Cal. 2d 109, 113-114 (Cal. 1950).

An assignment will generally be permitted under the law unless there is an express prohibition against assignment in the underlying contract or lease. Where assignments are permitted, the assignor need not consult the other party to the contract but may merely assign the rights at that time. However, an assignment cannot have any adverse effect on the duties of the other party to the contract, nor can it diminish the chance of the other party receiving complete performance. The assignor normally remains liable unless there is an agreement to the contrary by the other party to the contract.

The effect of a valid assignment is to remove privity between the assignor and the obligor and create privity between the obligor and the assignee. Privity is usually defined as a direct and immediate contractual relationship. See Merchants case above.

Further, for the assignment to be effective in most jurisdictions, it must occur in the present. One does not normally assign a future right; the assignment vests immediate rights and obligations.

No specific language is required to create an assignment so long as the assignor makes clear his/her intent to assign identified contractual rights to the assignee. Since expensive litigation can erupt from ambiguous or vague language, obtaining the correct verbiage is vital. An agreement must manifest the intent to transfer rights and can either be oral or in writing and the rights assigned must be certain.

Note that an assignment of an interest is the transfer of some identifiable property, claim, or right from the assignor to the assignee. The assignment operates to transfer to the assignee all of the rights, title, or interest of the assignor in the thing assigned. A transfer of all rights, title, and interests conveys everything that the assignor owned in the thing assigned and the assignee stands in the shoes of the assignor. Knott v. McDonald’s Corp ., 985 F. Supp. 1222 (N.D. Cal. 1997)

The parties must intend to effectuate an assignment at the time of the transfer, although no particular language or procedure is necessary. As long ago as the case of National Reserve Co. v. Metropolitan Trust Co ., 17 Cal. 2d 827 (Cal. 1941), the court held that in determining what rights or interests pass under an assignment, the intention of the parties as manifested in the instrument is controlling.

The intent of the parties to an assignment is a question of fact to be derived not only from the instrument executed by the parties but also from the surrounding circumstances. When there is no writing to evidence the intention to transfer some identifiable property, claim, or right, it is necessary to scrutinize the surrounding circumstances and parties’ acts to ascertain their intentions. Strosberg v. Brauvin Realty Servs., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998)

The general rule applicable to assignments of choses in action is that an assignment, unless there is a contract to the contrary, carries with it all securities held by the assignor as collateral to the claim and all rights incidental thereto and vests in the assignee the equitable title to such collateral securities and incidental rights. An unqualified assignment of a contract or chose in action, however, with no indication of the intent of the parties, vests in the assignee the assigned contract or chose and all rights and remedies incidental thereto.

More examples: In Strosberg v. Brauvin Realty Servs ., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998), the court held that the assignee of a party to a subordination agreement is entitled to the benefits and is subject to the burdens of the agreement. In Florida E. C. R. Co. v. Eno , 99 Fla. 887 (Fla. 1930), the court held that the mere assignment of all sums due in and of itself creates no different or other liability of the owner to the assignee than that which existed from the owner to the assignor.

And note that even though an assignment vests in the assignee all rights, remedies, and contingent benefits which are incidental to the thing assigned, those which are personal to the assignor and for his sole benefit are not assigned. Rasp v. Hidden Valley Lake, Inc ., 519 N.E.2d 153, 158 (Ind. Ct. App. 1988). Thus, if the underlying agreement provides that a service can only be provided to X, X cannot assign that right to Y.

Novation Compared to Assignment:

Although the difference between a novation and an assignment may appear narrow, it is an essential one. “Novation is a act whereby one party transfers all its obligations and benefits under a contract to a third party.” In a novation, a third party successfully substitutes the original party as a party to the contract. “When a contract is novated, the other contracting party must be left in the same position he was in prior to the novation being made.”

A sublease is the transfer when a tenant retains some right of reentry onto the leased premises. However, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, then the transfer is an assignment. The assignor is normally also removed from liability to the landlord only if the landlord consents or allowed that right in the lease. In a sublease, the original tenant is not released from the obligations of the original lease.

Equitable Assignments:

An equitable assignment is one in which one has a future interest and is not valid at law but valid in a court of equity. In National Bank of Republic v. United Sec. Life Ins. & Trust Co. , 17 App. D.C. 112 (D.C. Cir. 1900), the court held that to constitute an equitable assignment of a chose in action, the following has to occur generally: anything said written or done, in pursuance of an agreement and for valuable consideration, or in consideration of an antecedent debt, to place a chose in action or fund out of the control of the owner, and appropriate it to or in favor of another person, amounts to an equitable assignment. Thus, an agreement, between a debtor and a creditor, that the debt shall be paid out of a specific fund going to the debtor may operate as an equitable assignment.

In Egyptian Navigation Co. v. Baker Invs. Corp. , 2008 U.S. Dist. LEXIS 30804 (S.D.N.Y. Apr. 14, 2008), the court stated that an equitable assignment occurs under English law when an assignor, with an intent to transfer his/her right to a chose in action, informs the assignee about the right so transferred.

An executory agreement or a declaration of trust are also equitable assignments if unenforceable as assignments by a court of law but enforceable by a court of equity exercising sound discretion according to the circumstances of the case. Since California combines courts of equity and courts of law, the same court would hear arguments as to whether an equitable assignment had occurred. Quite often, such relief is granted to avoid fraud or unjust enrichment.

Note that obtaining an assignment through fraudulent means invalidates the assignment. Fraud destroys the validity of everything into which it enters. It vitiates the most solemn contracts, documents, and even judgments. Walker v. Rich , 79 Cal. App. 139 (Cal. App. 1926). If an assignment is made with the fraudulent intent to delay, hinder, and defraud creditors, then it is void as fraudulent in fact. See our article on Transfers to Defraud Creditors .

But note that the motives that prompted an assignor to make the transfer will be considered as immaterial and will constitute no defense to an action by the assignee, if an assignment is considered as valid in all other respects.

Enforceability of Assignments:

Whether a right under a contract is capable of being transferred is determined by the law of the place where the contract was entered into. The validity and effect of an assignment is determined by the law of the place of assignment. The validity of an assignment of a contractual right is governed by the law of the state with the most significant relationship to the assignment and the parties.

In some jurisdictions, the traditional conflict of laws rules governing assignments has been rejected and the law of the place having the most significant contacts with the assignment applies. In Downs v. American Mut. Liability Ins. Co ., 14 N.Y.2d 266 (N.Y. 1964), a wife and her husband separated and the wife obtained a judgment of separation from the husband in New York. The judgment required the husband to pay a certain yearly sum to the wife. The husband assigned 50 percent of his future salary, wages, and earnings to the wife. The agreement authorized the employer to make such payments to the wife.

After the husband moved from New York, the wife learned that he was employed by an employer in Massachusetts. She sent the proper notice and demanded payment under the agreement. The employer refused and the wife brought an action for enforcement. The court observed that Massachusetts did not prohibit assignment of the husband’s wages. Moreover, Massachusetts law was not controlling because New York had the most significant relationship with the assignment. Therefore, the court ruled in favor of the wife.

Therefore, the validity of an assignment is determined by looking to the law of the forum with the most significant relationship to the assignment itself. To determine the applicable law of assignments, the court must look to the law of the state which is most significantly related to the principal issue before it.

Assignment of Contractual Rights:

Generally, the law allows the assignment of a contractual right unless the substitution of rights would materially change the duty of the obligor, materially increase the burden or risk imposed on the obligor by the contract, materially impair the chance of obtaining return performance, or materially reduce the value of the performance to the obligor. Restat 2d of Contracts, § 317(2)(a). This presumes that the underlying agreement is silent on the right to assign.

If the contract specifically precludes assignment, the contractual right is not assignable. Whether a contract is assignable is a matter of contractual intent and one must look to the language used by the parties to discern that intent.

In the absence of an express provision to the contrary, the rights and duties under a bilateral executory contract that does not involve personal skill, trust, or confidence may be assigned without the consent of the other party. But note that an assignment is invalid if it would materially alter the other party’s duties and responsibilities. Once an assignment is effective, the assignee stands in the shoes of the assignor and assumes all of assignor’s rights. Hence, after a valid assignment, the assignor’s right to performance is extinguished, transferred to assignee, and the assignee possesses the same rights, benefits, and remedies assignor once possessed. Robert Lamb Hart Planners & Architects v. Evergreen, Ltd. , 787 F. Supp. 753 (S.D. Ohio 1992).

On the other hand, an assignee’s right against the obligor is subject to “all of the limitations of the assignor’s right, all defenses thereto, and all set-offs and counterclaims which would have been available against the assignor had there been no assignment, provided that these defenses and set-offs are based on facts existing at the time of the assignment.” See Robert Lamb , case, above.

The power of the contract to restrict assignment is broad. Usually, contractual provisions that restrict assignment of the contract without the consent of the obligor are valid and enforceable, even when there is statutory authorization for the assignment. The restriction of the power to assign is often ineffective unless the restriction is expressly and precisely stated. Anti-assignment clauses are effective only if they contain clear, unambiguous language of prohibition. Anti-assignment clauses protect only the obligor and do not affect the transaction between the assignee and assignor.

Usually, a prohibition against the assignment of a contract does not prevent an assignment of the right to receive payments due, unless circumstances indicate the contrary. Moreover, the contracting parties cannot, by a mere non-assignment provision, prevent the effectual alienation of the right to money which becomes due under the contract.

A contract provision prohibiting or restricting an assignment may be waived, or a party may so act as to be estopped from objecting to the assignment, such as by effectively ratifying the assignment. The power to void an assignment made in violation of an anti-assignment clause may be waived either before or after the assignment. See our article on Contracts.

Noncompete Clauses and Assignments:

Of critical import to most buyers of businesses is the ability to ensure that key employees of the business being purchased cannot start a competing company. Some states strictly limit such clauses, some do allow them. California does restrict noncompete clauses, only allowing them under certain circumstances. A common question in those states that do allow them is whether such rights can be assigned to a new party, such as the buyer of the buyer.

A covenant not to compete, also called a non-competitive clause, is a formal agreement prohibiting one party from performing similar work or business within a designated area for a specified amount of time. This type of clause is generally included in contracts between employer and employee and contracts between buyer and seller of a business.

Many workers sign a covenant not to compete as part of the paperwork required for employment. It may be a separate document similar to a non-disclosure agreement, or buried within a number of other clauses in a contract. A covenant not to compete is generally legal and enforceable, although there are some exceptions and restrictions.

Whenever a company recruits skilled employees, it invests a significant amount of time and training. For example, it often takes years before a research chemist or a design engineer develops a workable knowledge of a company’s product line, including trade secrets and highly sensitive information. Once an employee gains this knowledge and experience, however, all sorts of things can happen. The employee could work for the company until retirement, accept a better offer from a competing company or start up his or her own business.

A covenant not to compete may cover a number of potential issues between employers and former employees. Many companies spend years developing a local base of customers or clients. It is important that this customer base not fall into the hands of local competitors. When an employee signs a covenant not to compete, he or she usually agrees not to use insider knowledge of the company’s customer base to disadvantage the company. The covenant not to compete often defines a broad geographical area considered off-limits to former employees, possibly tens or hundreds of miles.

Another area of concern covered by a covenant not to compete is a potential ‘brain drain’. Some high-level former employees may seek to recruit others from the same company to create new competition. Retention of employees, especially those with unique skills or proprietary knowledge, is vital for most companies, so a covenant not to compete may spell out definite restrictions on the hiring or recruiting of employees.

A covenant not to compete may also define a specific amount of time before a former employee can seek employment in a similar field. Many companies offer a substantial severance package to make sure former employees are financially solvent until the terms of the covenant not to compete have been met.

Because the use of a covenant not to compete can be controversial, a handful of states, including California, have largely banned this type of contractual language. The legal enforcement of these agreements falls on individual states, and many have sided with the employee during arbitration or litigation. A covenant not to compete must be reasonable and specific, with defined time periods and coverage areas. If the agreement gives the company too much power over former employees or is ambiguous, state courts may declare it to be overbroad and therefore unenforceable. In such case, the employee would be free to pursue any employment opportunity, including working for a direct competitor or starting up a new company of his or her own.

It has been held that an employee’s covenant not to compete is assignable where one business is transferred to another, that a merger does not constitute an assignment of a covenant not to compete, and that a covenant not to compete is enforceable by a successor to the employer where the assignment does not create an added burden of employment or other disadvantage to the employee. However, in some states such as Hawaii, it has also been held that a covenant not to compete is not assignable and under various statutes for various reasons that such covenants are not enforceable against an employee by a successor to the employer. Hawaii v. Gannett Pac. Corp. , 99 F. Supp. 2d 1241 (D. Haw. 1999)

It is vital to obtain the relevant law of the applicable state before drafting or attempting to enforce assignment rights in this particular area.

Conclusion:

In the current business world of fast changing structures, agreements, employees and projects, the ability to assign rights and obligations is essential to allow flexibility and adjustment to new situations. Conversely, the ability to hold a contracting party into the deal may be essential for the future of a party. Thus, the law of assignments and the restriction on same is a critical aspect of every agreement and every structure. This basic provision is often glanced at by the contracting parties, or scribbled into the deal at the last minute but can easily become the most vital part of the transaction.

As an example, one client of ours came into the office outraged that his co venturer on a sizable exporting agreement, who had excellent connections in Brazil, had elected to pursue another venture instead and assigned the agreement to a party unknown to our client and without the business contacts our client considered vital. When we examined the handwritten agreement our client had drafted in a restaurant in Sao Paolo, we discovered there was no restriction on assignment whatsoever…our client had not even considered that right when drafting the agreement after a full day of work.

One choses who one does business with carefully…to ensure that one’s choice remains the party on the other side of the contract, one must master the ability to negotiate proper assignment provisions.

Founded in 1939, our law firm combines the ability to represent clients in domestic or international matters with the personal interaction with clients that is traditional to a long established law firm.

Read more about our firm

© 2024, Stimmel, Stimmel & Roeser, All rights reserved  | Terms of Use | Site by Bay Design

• What’s New on the Watch?
• COVID-19 Updates
• Private Equity Webinar Series
• Private Equity Finance
• Global PE Update
• Glenn West Musings
• Quarterly Private Funds Update
• Ancillary Agreements
• Co-investments
• Cybersecurity
• Going Privates
• Legal Developments
• Minority Investments
• Portfolio Company Matters
• Purchase Agreements
• R&W Insurance
• Secondaries
• Securities Laws
• Shareholder Agreements
• Specialist Areas
• Contributors
• Global Team
• Privacy Policy

Private Equity

Watch Your Inbox!

Get the latest views and developments in the private equity world from the Global Private Equity Watch team at Weil.

14.1 Assignment of Contract Rights

Learning objectives.

• Understand what an assignment is and how it is made.
• Recognize the effect of the assignment.
• Know when assignments are not allowed.
• Understand the concept of assignor’s warranties.

The Concept of a Contract Assignment

Contracts create rights and duties. By an assignment The passing or delivering by one person to another of the right to a contract benefit. , an obligee One to whom an obligation is owed. (one who has the right to receive a contract benefit) transfers a right to receive a contract benefit owed by the obligor One who owes an obligation. (the one who has a duty to perform) to a third person ( assignee One to whom the right to receive benefit of a contract is passed or delivered. ); the obligee then becomes an assignor One who agrees to allow another to receive the benefit of a contract. (one who makes an assignment).

The Restatement (Second) of Contracts defines an assignment of a right as “a manifestation of the assignor’s intention to transfer it by virtue of which the assignor’s right to performance by the obligor is extinguished in whole or in part and the assignee acquires the right to such performance.” Restatement (Second) of Contracts, Section 317(1). The one who makes the assignment is both an obligee and a transferor. The assignee acquires the right to receive the contractual obligations of the promisor, who is referred to as the obligor (see Figure 14.1 "Assignment of Rights" ). The assignor may assign any right unless (1) doing so would materially change the obligation of the obligor, materially burden him, increase his risk, or otherwise diminish the value to him of the original contract; (2) statute or public policy forbids the assignment; or (3) the contract itself precludes assignment. The common law of contracts and Articles 2 and 9 of the Uniform Commercial Code (UCC) govern assignments. Assignments are an important part of business financing, such as factoring. A factor A person who pays money to receive another’s executory contractual benefits. is one who purchases the right to receive income from another.

Figure 14.1 Assignment of Rights

Method of Assignment

Manifesting assent.

To effect an assignment, the assignor must make known his intention to transfer the rights to the third person. The assignor’s intention must be that the assignment is effective without need of any further action or any further manifestation of intention to make the assignment. In other words, the assignor must intend and understand himself to be making the assignment then and there; he is not promising to make the assignment sometime in the future.

Under the UCC, any assignments of rights in excess of $5,000 must be in writing, but otherwise, assignments can be oral and consideration is not required: the assignor could assign the right to the assignee for nothing (not likely in commercial transactions, of course). Mrs. Franklin has the right to receive $750 a month from the sale of a house she formerly owned; she assigns the right to receive the money to her son Jason, as a gift. The assignment is good, though such a gratuitous assignment is usually revocable, which is not the case where consideration has been paid for an assignment.

Acceptance and Revocation

For the assignment to become effective, the assignee must manifest his acceptance under most circumstances. This is done automatically when, as is usually the case, the assignee has given consideration for the assignment (i.e., there is a contract between the assignor and the assignee in which the assignment is the assignor’s consideration), and then the assignment is not revocable without the assignee’s consent. Problems of acceptance normally arise only when the assignor intends the assignment as a gift. Then, for the assignment to be irrevocable, either the assignee must manifest his acceptance or the assignor must notify the assignee in writing of the assignment.

Notice to the obligor is not required, but an obligor who renders performance to the assignor without notice of the assignment (that performance of the contract is to be rendered now to the assignee) is discharged. Obviously, the assignor cannot then keep the consideration he has received; he owes it to the assignee. But if notice is given to the obligor and she performs to the assignor anyway, the assignee can recover from either the obligor or the assignee, so the obligor could have to perform twice, as in Exercise 2 at the chapter’s end, Aldana v. Colonial Palms Plaza . Of course, an obligor who receives notice of the assignment from the assignee will want to be sure the assignment has really occurred. After all, anybody could waltz up to the obligor and say, “I’m the assignee of your contract with the bank. From now on, pay me the $500 a month, not the bank.” The obligor is entitled to verification of the assignment.

Effect of Assignment

General rule.

An assignment of rights effectively makes the assignee stand in the shoes of An assignee takes no greater rights than his assignor had. the assignor. He gains all the rights against the obligor that the assignor had, but no more. An obligor who could avoid the assignor’s attempt to enforce the rights could avoid a similar attempt by the assignee. Likewise, under UCC Section 9-318(1), the assignee of an account is subject to all terms of the contract between the debtor and the creditor-assignor. Suppose Dealer sells a car to Buyer on a contract where Buyer is to pay $300 per month and the car is warranted for 50,000 miles. If the car goes on the fritz before then and Dealer won’t fix it, Buyer could fix it for, say, $250 and deduct that $250 from the amount owed Dealer on the next installment (called a setoff). Now, if Dealer assigns the contract to Assignee, Assignee stands in Dealer’s shoes, and Buyer could likewise deduct the $250 from payment to Assignee.

The “shoe rule” does not apply to two types of assignments. First, it is inapplicable to the sale of a negotiable instrument to a holder in due course (covered in detail Chapter 23 "Negotiation of Commercial Paper" ). Second, the rule may be waived: under the UCC and at common law, the obligor may agree in the original contract not to raise defenses against the assignee that could have been raised against the assignor. Uniform Commercial Code, Section 9-206. While a waiver of defenses Surrender by a party of legal rights otherwise available to him or her. makes the assignment more marketable from the assignee’s point of view, it is a situation fraught with peril to an obligor, who may sign a contract without understanding the full import of the waiver. Under the waiver rule, for example, a farmer who buys a tractor on credit and discovers later that it does not work would still be required to pay a credit company that purchased the contract; his defense that the merchandise was shoddy would be unavailing (he would, as used to be said, be “having to pay on a dead horse”).

For that reason, there are various rules that limit both the holder in due course and the waiver rule. Certain defenses, the so-called real defenses (infancy, duress, and fraud in the execution, among others), may always be asserted. Also, the waiver clause in the contract must have been presented in good faith, and if the assignee has actual notice of a defense that the buyer or lessee could raise, then the waiver is ineffective. Moreover, in consumer transactions, the UCC’s rule is subject to state laws that protect consumers (people buying things used primarily for personal, family, or household purposes), and many states, by statute or court decision, have made waivers of defenses ineffective in such consumer transactions A contract for household or domestic purposes, not commercial purposes. . Federal Trade Commission regulations also affect the ability of many sellers to pass on rights to assignees free of defenses that buyers could raise against them. Because of these various limitations on the holder in due course and on waivers, the “shoe rule” will not govern in consumer transactions and, if there are real defenses or the assignee does not act in good faith, in business transactions as well.

When Assignments Are Not Allowed

The general rule—as previously noted—is that most contract rights are assignable. But there are exceptions. Five of them are noted here.

Material Change in Duties of the Obligor

When an assignment has the effect of materially changing the duties that the obligor must perform, it is ineffective. Changing the party to whom the obligor must make a payment is not a material change of duty that will defeat an assignment, since that, of course, is the purpose behind most assignments. Nor will a minor change in the duties the obligor must perform defeat the assignment.

Several residents in the town of Centerville sign up on an annual basis with the Centerville Times to receive their morning paper. A customer who is moving out of town may assign his right to receive the paper to someone else within the delivery route. As long as the assignee pays for the paper, the assignment is effective; the only relationship the obligor has to the assignee is a routine delivery in exchange for payment. Obligors can consent in the original contract, however, to a subsequent assignment of duties. Here is a clause from the World Team Tennis League contract: “It is mutually agreed that the Club shall have the right to sell, assign, trade and transfer this contract to another Club in the League, and the Player agrees to accept and be bound by such sale, exchange, assignment or transfer and to faithfully perform and carry out his or her obligations under this contract as if it had been entered into by the Player and such other Club.” Consent is not necessary when the contract does not involve a personal relationship.

Assignment of Personal Rights

When it matters to the obligor who receives the benefit of his duty to perform under the contract, then the receipt of the benefit is a personal right The right or duty of a particular person to perform or receive contract duties or benefits; cannot be assigned. that cannot be assigned. For example, a student seeking to earn pocket money during the school year signs up to do research work for a professor she admires and with whom she is friendly. The professor assigns the contract to one of his colleagues with whom the student does not get along. The assignment is ineffective because it matters to the student (the obligor) who the person of the assignee is. An insurance company provides auto insurance covering Mohammed Kareem, a sixty-five-year-old man who drives very carefully. Kareem cannot assign the contract to his seventeen-year-old grandson because it matters to the insurance company who the person of its insured is. Tenants usually cannot assign (sublet) their tenancies without the landlord’s permission because it matters to the landlord who the person of their tenant is. Section 14.4.1 "Nonassignable Rights" , Nassau Hotel Co. v. Barnett & Barse Corp. , is an example of the nonassignability of a personal right.

Assignment Forbidden by Statute or Public Policy

Various federal and state laws prohibit or regulate some contract assignment. The assignment of future wages is regulated by state and federal law to protect people from improvidently denying themselves future income because of immediate present financial difficulties. And even in the absence of statute, public policy might prohibit some assignments.

Contracts That Prohibit Assignment

Assignability of contract rights is useful, and prohibitions against it are not generally favored. Many contracts contain general language that prohibits assignment of rights or of “the contract.” Both the Restatement and UCC Section 2-210(3) declare that in the absence of any contrary circumstances, a provision in the agreement that prohibits assigning “the contract” bars “only the delegation to the assignee of the assignor’s performance.” Restatement (Second) of Contracts, Section 322. In other words, unless the contract specifically prohibits assignment of any of its terms, a party is free to assign anything except his or her own duties.

Even if a contractual provision explicitly prohibits it, a right to damages for breach of the whole contract is assignable under UCC Section 2-210(2) in contracts for goods. Likewise, UCC Section 9-318(4) invalidates any contract provision that prohibits assigning sums already due or to become due. Indeed, in some states, at common law, a clause specifically prohibiting assignment will fail. For example, the buyer and the seller agree to the sale of land and to a provision barring assignment of the rights under the contract. The buyer pays the full price, but the seller refuses to convey. The buyer then assigns to her friend the right to obtain title to the land from the seller. The latter’s objection that the contract precludes such an assignment will fall on deaf ears in some states; the assignment is effective, and the friend may sue for the title.

Future Contracts

The law distinguishes between assigning future rights under an existing contract and assigning rights that will arise from a future contract. Rights contingent on a future event can be assigned in exactly the same manner as existing rights, as long as the contingent rights are already incorporated in a contract. Ben has a long-standing deal with his neighbor, Mrs. Robinson, to keep the latter’s walk clear of snow at twenty dollars a snowfall. Ben is saving his money for a new printer, but when he is eighty dollars shy of the purchase price, he becomes impatient and cajoles a friend into loaning him the balance. In return, Ben assigns his friend the earnings from the next four snowfalls. The assignment is effective. However, a right that will arise from a future contract cannot be the subject of a present assignment.

Partial Assignments

An assignor may assign part of a contractual right, but only if the obligor can perform that part of his contractual obligation separately from the remainder of his obligation. Assignment of part of a payment due is always enforceable. However, if the obligor objects, neither the assignor nor the assignee may sue him unless both are party to the suit. Mrs. Robinson owes Ben one hundred dollars. Ben assigns fifty dollars of that sum to his friend. Mrs. Robinson is perplexed by this assignment and refuses to pay until the situation is explained to her satisfaction. The friend brings suit against Mrs. Robinson. The court cannot hear the case unless Ben is also a party to the suit. This ensures all parties to the dispute are present at once and avoids multiple lawsuits.

Successive Assignments

It may happen that an assignor assigns the same interest twice (see Figure 14.2 "Successive Assignments" ). With certain exceptions, the first assignee takes precedence over any subsequent assignee. One obvious exception is when the first assignment is ineffective or revocable. A subsequent assignment has the effect of revoking a prior assignment that is ineffective or revocable. Another exception: if in good faith the subsequent assignee gives consideration for the assignment and has no knowledge of the prior assignment, he takes precedence whenever he obtains payment from, performance from, or a judgment against the obligor, or whenever he receives some tangible evidence from the assignor that the right has been assigned (e.g., a bank deposit book or an insurance policy).

Some states follow the different English rule: the first assignee to give notice to the obligor has priority, regardless of the order in which the assignments were made. Furthermore, if the assignment falls within the filing requirements of UCC Article 9 (see Chapter 28 "Secured Transactions and Suretyship" ), the first assignee to file will prevail.

Figure 14.2 Successive Assignments

Assignor’s Warranties

An assignor has legal responsibilities in making assignments. He cannot blithely assign the same interests pell-mell and escape liability. Unless the contract explicitly states to the contrary, a person who assigns a right for value makes certain assignor’s warranties Promises, express or implied, made by an assignor to the assignee about the merits of the assignment. to the assignee: that he will not upset the assignment, that he has the right to make it, and that there are no defenses that will defeat it. However, the assignor does not guarantee payment; assignment does not by itself amount to a warranty that the obligor is solvent or will perform as agreed in the original contract. Mrs. Robinson owes Ben fifty dollars. Ben assigns this sum to his friend. Before the friend collects, Ben releases Mrs. Robinson from her obligation. The friend may sue Ben for the fifty dollars. Or again, if Ben represents to his friend that Mrs. Robinson owes him (Ben) fifty dollars and assigns his friend that amount, but in fact Mrs. Robinson does not owe Ben that much, then Ben has breached his assignor’s warranty. The assignor’s warranties may be express or implied.

Key Takeaway

Generally, it is OK for an obligee to assign the right to receive contractual performance from the obligor to a third party. The effect of the assignment is to make the assignee stand in the shoes of the assignor, taking all the latter’s rights and all the defenses against nonperformance that the obligor might raise against the assignor. But the obligor may agree in advance to waive defenses against the assignee, unless such waiver is prohibited by law.

There are some exceptions to the rule that contract rights are assignable. Some, such as personal rights, are not circumstances where the obligor’s duties would materially change, cases where assignability is forbidden by statute or public policy, or, with some limits, cases where the contract itself prohibits assignment. Partial assignments and successive assignments can happen, and rules govern the resolution of problems arising from them.

When the assignor makes the assignment, that person makes certain warranties, express or implied, to the assignee, basically to the effect that the assignment is good and the assignor knows of no reason why the assignee will not get performance from the obligor.

• If Able makes a valid assignment to Baker of his contract to receive monthly rental payments from Tenant, how is Baker’s right different from what Able’s was?
• Able made a valid assignment to Baker of his contract to receive monthly purchase payments from Carr, who bought an automobile from Able. The car had a 180-day warranty, but the car malfunctioned within that time. Able had quit the auto business entirely. May Carr withhold payments from Baker to offset the cost of needed repairs?
• Assume in the case in Exercise 2 that Baker knew Able was selling defective cars just before his (Able’s) withdrawal from the auto business. How, if at all, does that change Baker’s rights?
• Why are leases generally not assignable? Why are insurance contracts not assignable?

Assignment—key cases

Published by a lexisnexis banking & finance expert.

This Practice Note sets out certain key cases and relevant content in relation to assignment. The cases are divided by topic area and include:

Assignment—general points

Assignment—legal (statutory) or equitable

Importance and advantages of giving notice to debtor

Standing to sue debtor where assignment is equitable

Impact of prohibition or restriction on assignment

Access this content for free with a 7 day trial of LexisNexis and benefit from:

• Instant clarification on points of law
• Smart search
• Workflow tools
• 41 practice areas

** Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.

Get your quote today and take step closer to being able to benefit from:

• 36 practice areas

Get a LexisNexis quote

* denotes a required field

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Existing user? Sign-in CONTINUE READING GET A QUOTE

Related legal acts:

• Law of Property Act 1925 (1925 c 20)

Key definition:

Equitable assignment definition, what does equitable assignment mean.

assignment s can occur in equity when any of the requirements of legal assignment are not satisfied.

Popular documents

Scotland—the process for applying for sequestration.

Scotland—the process for applying for sequestrationSequestration in Scotland is the legal process by which an insolvent debtor’s estate is gathered in, realised and then distributed among their creditors by a trustee appointed for that purpose. The process requires that a formal award of

If planning permission imposes restrictions on a licensed premises opening hours, once operational can

If planning permission imposes restrictions on a licensed premises opening hours, once operational can the personal licence holder apply for a Temporary Events Notice (TEN) to open for longer hours than those permitted in the planning permission?To use any property for a licensable activity both

Late payment penalties—inheritance tax

Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid

Brussels I (recast)—domicile (Arts 4 and 63) [Archived]

Brussels I (recast)—domicile (Arts 4 and 63) [Archived]ARCHIVED: This Practice Note has been archived and is not maintained.This Practice Note considers the general rule set out in Article 4 of Regulation (EU) 1215/2012, Brussels I (recast) when determining the relevance of a defendant’s domicile to

0330 161 1234

• International Sales(Includes Middle East)
• Latin America and the Caribbean
• Netherlands
• New Zealand
• Philippines
• South Africa
• Switzerland
• United States

Popular Links

• Supplier Payment Terms
• Partner Alliance Programme

HELP & SUPPORT

• Legal Help and Support
• Tolley Tax Help and Support

LEGAL SOLUTIONS

• Compliance and Risk
• Forms and Documents
• Legal Drafting
• Legal Research
• Magazines and Journals
• News and Media Analysis
• Practice Management
• Privacy Policy
• Cookie Settings
• Terms & Conditions
• Data Protection Inquiry
• Protecting Human Rights: Our Modern Slavery Agreement

Primary tabs

Assign is the act of transferring rights , property , or other benefits to another party (the assignee ) from the party who holds such benefits under contract (the assignor). This concept is used in both  contract  and property law . 

Contract Law  

Under contract law, when one party assigns a  contract , the assignment represents both: (1) an assignment of rights; and (2) a delegation of  duties . 

• For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C. 
• Here, A has both: (1) assigned A’s rights under the contract to the $50; and (2) delegated A’s  duty  to teach guitar, to C. 
• In this example, A is both the “assignor” and the “delegee” who delegates  the duties to another (C), C is known as the “ obligor ” who must perform the  obligations  to the  assignee , and B is the assignee who is owed duties and is liable to the obligor.

Assigning of Rights/Duties Under Contract Law

There are a few notable rules regarding assignments under contract law. 

First, if an individual has not yet secured the contract to perform duties to another, they cannot assign their future right to an assignee. 

• That is, if A has not yet contracted with B to teach B guitar, A cannot assign their rights to C. 

Second, rights cannot be assigned when they  materially change the obligor’s duty and rights. 

Third, the obligor can sue the assignee directly if the assignee does not pay them. 

• Following the previous example, this means that C ( obligor ) can sue B ( assignee ) if C teaches guitar to B, but B does not pay C $50 in return.

Delegation of Duties

If the promised performance requires a rare genius or skill, then the delegee cannot delegate it to the obligor. It can only be delegated if the promised  performance  is more commonplace. Further, an obligee can sue if the  assignee  does not perform.  However, the delegee is  secondarily liable  unless there has been an  express   release  of the delegee. 

• Meaning if B does want C to teach guitar but C refuses to, then B can sue C. If C still refuses to perform, then B can compel A to fulfill the duties under secondary liability.

Lastly, a related concept is  novation , which is when a new obligor substitutes and releases an old obligor.  If novation occurs, then the original obligor’s duties are wiped out. Novation requires an original obligee’s  consent . 

Property Law

Under  property law , assignment typically arises in landlord-tenant situations.

• For example, A might be renting from landlord B but wants another party (C) to take over the property. 
• In this scenario, A might choose between  assigning  and  subleasing  the property to C. 
• If  assigning , A would give C the entire balance of the term , with no reversion to anyone; whereas if  subleasing , A would give C the property for a limited period of the remaining term.
• Under assignment, C would have  privity  of  estate  with the landlord while under a sublease, C would not. 

[Last updated in June of 2022 by the Wex Definitions Team ]

• business law
• property & real estate law
• business sectors
• commercial transactions
• property law
• wex articles
• wex definitions

This website uses cookies so that we can provide you with the best user experience possible. Our Cookie Notice is part of our Privacy Notice and explains in detail how and why we use cookies. To take full advantage of our website, we recommend that you click on “Accept All”. You can change these settings at any time via the button “Update Cookie Preferences” in our Cookie Notice .

Technical cookies are required for the site to function properly, to be legally compliant and secure. Session cookies only last for the duration of your visit and are deleted from your device when you close your internet browser. Persistent cookies, however, remain and continue functioning on repeat visits.

CMS does not use any cookie based Analytics or tracking on our websites; see details here .

Personalisation cookies collect information about your website browsing habits and offer you a personalised user experience based on past visits, your location or browser settings. They also allow you to log in to personalised areas and to access third party tools that may be embedded in our website. Some functionality will not work if you don’t accept these cookies.

Social Media cookies collect information about you sharing information from our website via social media tools, or analytics to understand your browsing between social media tools or our Social Media campaigns and our own websites. We do this to optimise the mix of channels to provide you with our content. Details concerning the tools in use are in our Privacy Notice .

How to bookmark a page on iPhone 

• Tap the Share button at the bottom of the Safari screen for the website you're on
• Tap the icon labelled 'Add to Home Screen'
• Tap the 'Add' button in the upper right corner
• Launch the website from your Home screen by tapping its icon.

How to bookmark a page on Android 

• Click on the 'menu' button.
• Click on the 'start' button and save as a bookmark.
• Click on the 'menu' button again and select "Bookmarks".
• Press and hold the LawNow icon and then click "Add to home screen".

How to bookmark a page on Windows 

• Click on the "..." icon in the bottom-right of the screen.
• Select "pin to start"
• A new tile linking to LawNow will now appear on the start menu

How to bookmark a page on Blackberry 

• Click on the BlackBerry 'menu' icon.
• Select "Add to Home Screen".
• In the "Add to Home Screen" dialog window, select the "add" button.

Search Filters

• Member log in

Jurisdiction / Region

Our combination of practice excellence and deep industry expertise provides a distinct competitive advantage to our clients, bringing together legal expertise, commercial insight and close professional support.

• Bosnia and Herzegovina
• Czech Republic
• Latin America
• Middle East
• Netherlands
• North Macedonia
• Saudi Arabia
• South Africa
• Switzerland
• United Arab Emirates
• United Kingdom
• Consumer Products (all)
• Consumer Products - fashion & luxury
• Consumer Products - FMCG
• Consumer Products - food & drink
• Consumer Products - retail
• Data Centres
• Energy (all)
• Energy - Conventional Power
• Energy - Nuclear
• Energy - Oil & Gas
• Energy - Power
• Energy - Renewables & Climate
• Energy - Water
• Higher Education
• Hotels & Leisure
• Infrastructure & Projects
• Life Sciences
• Manufacturing
• Private Equity
• Public Sector
• Real Estate & Construction
• Technology, Media and Communications

Our Expertise

• ADR/mediation
• Advertising & Marketing
• Agriculture
• Anti-bribery & Corruption
• Asset Finance
• Asset Management, Funds and Capital Investment Law
• Banking & Finance
• Class actions
• Commercial & General Business Issues
• Commercial Contracts
• Commercial Distribution
• Communications
• Competition/antitrust
• Construction
• Corporate Finance
• Corporate Law & Transactions
• Corporate Recovery & Insolvency
• Criminal Law
• Crypto, FinTech & Digital Assets
• Data Protection & Privacy
• Debt Capital Markets
• Derivatives & Structured Finance
• Directors' Issues
• Distribution and Franchising
• Employee Share Schemes
• Energy Disputes
• Environment
• Environment - Cleantech
• Environmental, Social and Governance (ESG)
• Equity Capital Markets
• EU Sales Law
• Financial Institutions Regulation
• Health and Safety
• Hotels - Financing
• Infrastructure
• Insolvency law & restructuring
• Insurance & Reinsurance
• Intellectual Property
• International Arbitration
• Investigations & Dawn Raids
• Investing in Europe
• Investment Arbitration
• Islamic finance
• IT Security Law
• Life Sciences - Healthcare
• Life Sciences - Regulation
• MBOs/MBIs & Private Equity
• Merger Control
• Mergers & Acquisitions
• Mining and Minerals
• Outsourcing
• Personal Injury
• Private Clients
• Procurement
• Product Liability
• Professional Indemnity/ Negligence
• Projects & Project Finance
• Real Estate
• Real Estate - Finance
• Sustainability
• Tax - Transfer Pricing
• US Securities

Contracts: The critical difference between Assignment and Novation

Introduction

An assignment of rights under a contract is normally restricted to the benefit of the contract. Where a party wishes to transfer both the benefit and burden of the contract this generally needs to be done by way of a novation. The distinction between assignment and novation was addressed recently in the case of Davies v Jones (2009), whereby the court considered whether a deed of assignment of the rights under a contract could also transfer a positive contractual obligation, which in this instance included the obligation to pay.

Mr Jones (the first defendant) contracted to sell Lidl (the second defendant) a freehold property (the “Lidl Contract”). At that time, the freehold was vested in the claimants as trustees of a retired benefit scheme. Mr Jones contracted to buy the land from the claimants (the “ Trustee Contract”) and assigned his right, title and interest to the Trustee Contract to Lidl by way of a deed of assignment.

Clause 18 of the Trustee Contract permitted Mr Jones, as purchaser, to retain £100,000 from the purchase monies payable to the claimants until the outstanding works (ground clearance and site preparation) had been completed. Following completion of the works Mr Jones was entitled to retain one half of the proper costs from the retention and release the balance to the claimants. There was a similar clause in the Lidl Contract, which allowed Lidl to retain the proper costs from the retention. Importantly, although similar, under the Lidl Contract Lidl was entitled to retain the whole cost of carrying out the works as against only half in the Trustee Contract.

Lidl retained the sum of £100,000 from the money due by Mr Jones to the claimants on completion of the contract. Once the works were completed Mr Jones failed to pay the claimant the retention monies claiming that the proper cost of the works was over £200,000.

The claimants argued that the benefits granted by way of the assignment were conditional on Lidl performing Mr Jones’ obligations under the Trustee Contract. Therefore, the question considered by the court was whether Lidl was bound to observe the terms of the Trustee Contract and in particular clause 18, given that benefit of the contract had been assigned to them.

The court held that the benefit which passed to Lidl by way of the deed of assignment did not require Lidl to perform the obligations of Mr Jones under the Trustee Contract. The assignment did not impose any burden on Lidl. The only person who clause 18 of the Trustee Contract was binding on was Mr Jones. The transfer to Lidl could not impose on Lidl the obligation to perform Mr Jones’ obligations and these therefore remained with Mr Jones. This reaffirms the principle that when you take an assignment of a contract, you don’t take on the burden (except in limited circumstances where enjoyment of the benefit is conditional on complying with some formality). Therefore, if an owner assigns a building contract to a purchaser of land and the building is still under construction, the obligation to pay the contractor remains with the original owner and does not pass to the new owner.

Assignment and novation in the Construction Industry

Both assignment and novation are common within the construction industry and careful consideration is required as to which mechanism is suitable. Assignments are frequently used in relation to collateral warranties, whereby the benefit of a contract is transferred to a third party. Likewise, an assignment of rights to a third party with an interest in a project may be suitable when the Employer still needs to fulfil certain obligations under the contract, for example, where works are still in progress. A novation is appropriate where the original contracting party wants the obligations under the contract to rest with a third party. This is commonly seen in a design and build scenario whereby the Employer novates the consultants’ contracts to the Contractor, so that the benefit and burden of the appointments are transferred, and the Employer benefits from a single point of responsibility in the form of the Contractor.

If the intention is that the assignee is to accept both the benefit and burden of a contract, it is not normally sufficient to rely on a deed of assignment, as the burden of the contract remains with the assignor. In these instances a novation would be a preferable method of transferring obligations, and this allows for both the benefit and burden to be transferred to the new party and leaves no residual liability with the transferor.

Reference: Davies v Jones [2009] EWCA Civ 1164.

Related content

Court of appeal clarifies termination for repeated breach and late payment under the jct, eu commission finetunes the foreign subsidies regulation: insights into the latest guidance, ruling no. 148/2024: tax exemption for dividends and capital gains realized by foreign funds - requirements.

• Follow us on:
• LinkedIn  

© CMS Legal 2024

• Terms of Use
• Privacy Notice
• Cookie Notice

Legal Assignment: Everything You Need to Know

A legal assignment occurs when a party assigns their contractual rights to a third party. 3 min read updated on September 19, 2022

A legal assignment occurs when a party assigns their contractual rights to a third party. The benefit that the issuing party would have received from the contract is now assigned to the third party. The party appointing their rights is referred to as the assignor, while the party obtaining the rights is the assignee.

Assignment of Contract

A legal assignment occurs when:

• The rights in personal or real property are transferred from one party to another
• The transfer also gives the new owner the rights to the property that the prior owner held prior to the transfer occurring

In the Purman Estate case, the court stated that a legal assignment is a transfer of property, or of some right or interest, from one person to another. It also stated that it must be the proper transfer of one whole interest in that property.

An assignment of rights occurs when an assignor gives up or transfers their rights of a future benefit to another party. In other words, an assignment is the act of one party transferring, vesting, or causing to vest their interest in a property to another party. A valid legal assignment only occurs when all underlying elements of a lawfully binding contract are included in it, including intent. A trial court can determine if an assignment has occurred. To prevent disputes or miscommunications, it's important that the subject matter is clearly identified in the assignment.

A contract assignment occurs when a party assigns their contractual rights to a third party. The benefit the issuing party would have received from the contract is now assigned to the third party. The party appointing their rights is referred to as the assignor, while the party obtaining the rights is the assignee. Essentially, the assignor prefers that the assignee reverses roles and assumes the contractual rights and obligations as stated in the contract. Before this can occur, all parties to the original contract must be notified.

How Assignments Work

The specific language used in the contract will determine how the assignment plays out. For example , one contract may prohibit assignment, while another contract may require that all parties involved agree to it before proceeding. Remember, an assignment of contract does not necessarily alleviate an assignor from all liability. Many contracts include an assurance clause guaranteeing performance. In other words, the initial parties to the contract guarantee that the assignee will achieve the desired goal.

When Assignments Will Not Be Enforced

The following situations indicate when an assignment of a contract is not enforced:

• The contract specifically prohibits assignment
• The assignment drastically changes the expected outcome
• The assignment is against public policy or illegal

Delegation vs. Assignment

Occasionally, one party in a contract will desire to pass on or delegate their responsibility to a third party without creating an assignment contract. Some duties are so specific in nature that they cannot be delegated. Adding a clause in the contract to prevent a party from delegating their responsibilities and duties is highly recommended.

Three Steps to Follow if You Want to Assign a Contract

There are three main steps to take if you're looking to assign a contract:

• Make sure the current contract does not contain an anti-assignment clause
• Officially execute the assignment by transferring the parties' obligations and rights
• Notify the obligor of the changes made

Once the obligor is notified, the assignor will effectively be relieved of liability.

Anti-Assignment Clauses

If you'd prefer not to allow the party you're doing business with to assign a contract, you may be able to prevent this from occurring by clearly stating anti-assignment clauses in the original contract. The three most common anti-assignment clauses are:

• Consent required for assignment
• Consent not needed for new owners or affiliates
• Consent not unreasonably withheld

Based on these three clauses, no party in the contract is allowed to delegate or assign any obligations or rights without prior written consent from the other parties. Any delegation or assignment in violation of this passage shall be deemed void. It is not possible to write an anti-assignment clause that goes against an assignment that is issued or ordered by a court.

If you need help with a legal assignment, you can  post your job  on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. 

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• Assignment Law
• Assignment Contract Law
• Assignment of Rights and Obligations Under a Contract
• Assignment of Rights Example
• Consent to Assignment
• Assignment Legal Definition
• What Is the Definition of Assigns
• Delegation vs Assignment
• Assignment Of Contracts
• Assignment of Contract Rights

22 August 2024: Due to technical disruption, we are experiencing some delays to publication. We are working to restore services and apologise for the inconvenience. For further updates please visit our website: https://www.cambridge.org/universitypress/about-us/news-and-blogs/cambridge-university-press-publishing-update-following-technical-disruption

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings .

Login Alert

• < Back to search results
• Understanding the Law of Assignment

Understanding the Law of Assignment

• Get access Buy a print copy Check if you have access via personal or institutional login Log in Register

This Book has been cited by the following publications. This list is generated based on data provided by Crossref .

• Google Scholar
• C. H. Tham , Singapore Management University
• Export citation
• Buy a print copy

Book description

The practical importance of intangible personalty such as debt, bonds, equities, futures, derivatives and other financial instruments has never been greater than it is today. The same may be said of interests in intellectual property. Yet the assignment of these intangible assets from one to another remains difficult to understand. Assignments are often taken to operate as a form of transfer akin to conveyances of legal titles to tangible personalty. However, this conception does not accurately reflect the law of assignment as it has developed in the caselaw in England and Wales. This book sets out a different model of the workings of assignments as a matter of English law, one that provides an analytical, yet historically sensitive, framework which allows us to better understand how, and why, assignments work in the way the cases tell us they do.

‘Chee Ho Tham has here produced a remarkably well-written, erudite and thoroughly informative work, and in addition a very distinct accretion to the scholarship on assignment. I recommend it without hesitation to commercial and obligations lawyers alike.’

Andrew Tettenborn Source: Lloyd's Maritime and Commercial Law Quarterly

• Aa Reduce text
• Aa Enlarge text

Refine List

Actions for selected content:.

• View selected items
• Save to my bookmarks
• Export citations
• Download PDF (zip)
• Save to Kindle
• Save to Dropbox
• Save to Google Drive

Save content to

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to .

To save content items to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle .

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service .

Save Search

You can save your searches here and later view and run them again in "My saved searches".

Page 1 of 2

• « Prev
• Next »

Understanding the Law of Assignment pp i-ii

• Get access Check if you have access via personal or institutional login Log in Register

Understanding the Law of Assignment - Title page pp iii-iii

Copyright page pp iv-iv, contents pp v-viii, foreword pp ix-x, preface pp xi-xiv, cases pp xv-xxxii, legislation pp xxxiii-xl, abbreviations pp xli-xlvi, part i - introduction pp 1-30, 1 - introduction pp 3-15, 2 - a conceptual account of equitable and statutory assignments pp 16-30, part ii - the model pp 31-150, 3 - invariability pp 33-66, 4 - different models of equitable assignment pp 67-105, 5 - misconceptions pp 106-126, 6 - combination pp 127-150, part iii - joinder pp 151-202, 7 - joinder of assignor in equitable proceedings pp 153-170, 8 - joinder of assignor in common law proceedings pp 171-178, 9 - non-joinder of assignor of legal choses pp 179-202, part iv - notice pp 203-324, 10 - giving notice of equitable assignments and its effect on competing assignees: the ‘rule’ in dearle v. hall pp 205-245, 11 - knowledge of assignment: substantive effects in equity between obligor and assignor pp 246-280, 12 - knowledge of assignment: procedural avoidance in equity and by statute of ‘equities’ or ‘defences’ pp 281-324, part v - statutes pp 325-410, 13 - ‘statutory’ assignments under law of property act 1925, section 136(1) pp 327-387, 14 - statutory dealings in specific classes of intangible assets pp 388-410, part vi - consequences pp 411-455, 15 - why it matters pp 413-455, altmetric attention score, full text views.

Full text views reflects the number of PDF downloads, PDFs sent to Google Drive, Dropbox and Kindle and HTML full text views for chapters in this book.

Book summary page views

Book summary views reflect the number of visits to the book and chapter landing pages.

* Views captured on Cambridge Core between #date#. This data will be updated every 24 hours.

Usage data cannot currently be displayed.

Search for:

Jump straight to:

Please enter a search term

What sectors are you interested in?

We can use your selection to show you more of the content that you’re interested in.

Sign-up and we’ll remember your preferences

Sign-up to follow topics, sectors, people and also have the option to receive a weekly update of lastest news across your areas of interest.

Got an account already? Sign in

Want to speak to an advisor from your closest office?

Out-law / your daily need-to-know.

Out-Law Guide 4 min. read

Assignment and novation

19 Aug 2011, 4:40 pm

Assignment involves the transfer of an interest or benefit from one person to another. However the 'burden', or obligations, under a contract cannot be transferred.

Assignment in construction contracts

As noted above only the benefits of a contract can be assigned - not the burden. In the context of a building contract:

• the employer may assign its right to have the works constructed, and its right to sue the contractor in the event that the works are defective – but not its obligation to pay for the works;
• the contractor may assign its right to payment of the contract sum - but not its obligation to construct the works in accordance with the building contract or its obligation to meet any valid claims, for example for defects.

After assignment, the assignee is entitled to the benefit of the contract and to bring proceedings against the other contracting party to enforce its rights. The assignor still owes obligations to the other contracting party, and will remain liable to perform any part of the contract that still has to be fulfilled since the burden cannot be assigned. In practice, what usually happens is that the assignee takes over the performance of the contract with effect from assignment and the assignor will generally ask to be indemnified against any breach or failure to perform by the assignee.  The assignor will remain liable for any past liabilities incurred before the assignment.

In construction contracts, the issue of assignment often arises in looking at whether collateral warranties granted to parties outside of the main construction contract can be assigned.

Funders may require the developer to assign contractual rights against the contractor and the design team as security to the funder, as well as the benefit of performance bonds and parent company guarantees. The developer may assign such rights to the purchaser either during or after completion of the construction phase.

Contractual assignment provisions

Many contracts exclude or qualify the right to assignment, and the courts have confirmed that a clause which provides that a party to a contract may not assign the benefit of that contract without the consent of the other party is legally effective and will extend to all rights and benefits arising under the contract, including the right to any remedies. Other common qualifications on the right to assign include:

• a restriction on assignment without the consent of the other party, whether or not such consent is not to be unreasonably withheld or delayed;
• only one of the parties may assign;
• only certain rights may be assigned – for example, warranties and indemnities may be excluded;
• a limit on the number of assignments - as is almost always the case in respect of collateral warranties;
• a right to assign only to a named assignee or class of assignee.

Note that in some agreements where there is a prohibition on assignment, it is sometimes possible to find the reservation of specific rights to create a trust or establish security over the subject matter of the agreement instead.

Legal and equitable assignment

The Law of Property Act creates the ability to legally assign a debt or any other chose in action where the debtor, trustee or other relevant person is notified in writing. If the assignment complied with the formalities in the Act it is a legal assignment, otherwise it will be an equitable assignment.

Some transfers can only take effect as an equitable assignment, for example:

• an oral assignment;
• an assignment by way of charge;
• an assignment of only part of the chosen in action;
• an assignment of which notice has not been given to the debtor;
• an agreement to assign.

If the assignment is equitable rather than legal, the assignor cannot enforce the assigned property in its own name and to do so must join the assignee in any action. This is designed to protect the debtor from later proceedings brought by the assignor or another assignee from enforcing the action without notice of the earlier assignment.

Security assignments

Using assignment as a way of taking security requires special care, as follows:

• if the assignment is by way of charge, the assignor retains the right to sue for any loss it suffers caused by a breach of the other contract party;
• if there is an outright assignment coupled with an entitlement to a re-assignment back once the secured obligation has been performed, it is an assignment by way of legal mortgage.

Please see our separate Out-Law guide for more information on types of security.

Restrictions on assignment

There are restrictions on the assignment of certain types of interest on public policy grounds, as follows:

• certain personal contracts – for example, a contract for the employment of a personal servant or for the benefit of a motor insurance policy cannot be assigned;
• a bare cause of action or 'right to sue' where the assignee has no commercial interest in the subject matter of the underlying transaction cannot be assigned;
• certain rights conferred by statute – for example, a liquidator's powers to bring wrongful trading proceedings against a director – cannot be assigned;
• an assignment of a contract may not necessarily transfer the benefit of an arbitration agreement contained in the contract;
• the assignment of certain rights is regulated – for example, the assignment of company shares or copyright.

If you want to transfer the burden of a contract as well as the benefits under it, you have to novate. Like assignment, novation transfers the benefits under a contract but unlike assignment, novation transfers the burden under a contract as well.

In a novation the original contract is extinguished and is replaced by a new one in which a third party takes up rights and obligations which duplicate those of one of the original parties to the contract. Novation does not cancel past rights and obligations under the original contract, although the parties can agree to novate these as well.

Novation is only possible with the consent of the original contracting parties as well as the new party. Consideration (the 'price' paid, whether financial or otherwise, by the new party in return for the contract being novated to it) must be provided for this new contract unless the novation is documented in a deed signed by all three parties.

• Construction Contracts
• Construction
• Government and public sector
• Real Estate
• Technology, Science & Industry
• United Kingdom

Contact an adviser

Graham Alty

Latest News

Uk asset holding company regime, notification of uncertain uk tax treatment by large businesses, updated saudi investment law to enhance foreign investor rights, ‘single-use’ cup charge proposed in scotland, dutch dpa warns employers of ai data breaches, don't miss a thing.

Sign-up to receive the latest news, analysis and events direct to your e-mail inbox

You might also like

Out-Law News

European Commission sets out plans for future connectivity

The European Commission has set out plans to improve telecommunications and digital infrastructure across the bloc in the coming years, starting with the next legislative term.

UK Budget 2024: general election battle lines become clearer

The UK chancellor Jeremy Hunt’s Budget speech on Wednesday, and the response of Labour leader Sir Keir Starmer to it, provide an insight into how the forthcoming UK general election campaign will be fought, an expert in public policy has said.

UK announces Energy Charter Treaty withdrawal, citing need to focus on net zero strategy

The UK has announced that it will leave the Energy Charter Treaty (ECT), due to what it described as the failure of efforts to align the Treaty with its net zero commitments.

UK government plans to revamp holiday pay calculation for part-year workers

Out-Law Analysis

Pensions disputes: managing member expectations paramount

UK subsidy control post-Brexit: access to effective judicial remedies

'Steps of court' settlement was not negligent, court rules

'Vast majority' of companies not seeking to avoid tax

'World first' industrial decarbonisation strategy developed in the UK

3D printing: UK product safety issues

5G potential for business highlighted in UK funding programme

Sectors and what we do

Sectors we work in.

• Financial Services
• Infrastructure
• Your assets
• Your company
• Your finance
• Your legal team and resource
• Your people
• Your risks and regulatory environment

Your privacy matters to us

We use cookies that are essential for our site to work. To improve our site, we would like to use additional cookies to help us understand how visitors use it, measure traffic to our site from social media platforms and to personalise your experience. Some of the cookies that we use are provided by third parties. To accept all cookies click ‘accept all’. To reject all optional cookies click ‘reject all’. To choose which optional cookies to allow click ‘cookie settings’. This tool uses a cookie to remember your choices. Please visit our cookie policy for more information.

• Law of torts – Complete Reading Material
• Weekly Competition – Week 4 – September 2019
• Weekly Competition – Week 1 October 2019
• Weekly Competition – Week 2 – October 2019
• Weekly Competition – Week 3 – October 2019
• Weekly Competition – Week 4 – October 2019
• Weekly Competition – Week 5 October 2019
• Weekly Competition – Week 1 – November 2019
• Weekly Competition – Week 2 – November 2019
• Weekly Competition – Week 3 – November 2019
• Weekly Competition – Week 4 – November 2019
• Weekly Competition – Week 1 – December 2019
• Sign in / Join

Assignment of contract

This article is written by Neha Dahiya, a law student at Dr. B.R. Ambedkar National Law University, Sonipat. This article explains the meaning, types, and conditions of the assignment of contract. It also seeks to explain the judicial opinion about assignment by the means of a case study. 

This article has been published by Sneha Mahawar .

Table of Contents

Introduction

A contract binds the involved parties to fulfil their obligations. Non-fulfillment of the obligations results in the breach of the contract. Thus, the rights and obligations arising from the contract are owned by the contracting parties. However, in certain cases, these contractual rights and obligations can be transferred to a third party. This is known as the assignment of contract. In a world where the complexity of transactions is increasing continuously, such assignments have become very common. 

Basics of a contract 

Section 2(h) of the Indian Contract Act, 1872 defines a contract as “an agreement enforceable by law”. It is characterised by an offer and an acceptance along with consideration and is backed by the power of law. An agreement is a promise by one party to another. A proposal once accepted becomes a promise. The formation of a contract results in rights and obligations for both parties. A lawful contract binds both parties to fulfil their obligations. In case they are not fulfilled, the aggrieved party can avail of the remedies provided by the law. 

Thus, Contract= (Offer + Acceptance) Agreement + Enforceability of law 

For example: ‘A’ promises to sell his house to ‘B’ for a consideration of Rs. 50 lakhs. Here, there was an offer to sell the house by ‘A’ and acceptance by ‘B’ for consideration of a fixed sum. It is a lawful agreement and hence is a contract. Here, ‘A’ has the obligation to give the house to ‘B’ and ‘B’ has an obligation to pay the amount. If either of them fails to fulfil their respective obligation, it will result in a breach of the contract. 

What is assignment of contract 

When the rights and obligations in a contract are transferred to a third party, who is not a party to the contract, it is called the assignment of contract. For example, in the case where there was a contract between ‘A’ and ‘B’ where ‘A’ was supposed to pay ‘B’ some amount, ‘A’ had an obligation to pay ‘B’ the amount and ‘B’ had the right to receive the amount. Along with this, if ‘B’ had to pay the same amount to ‘C’ and he asked ‘A’ to pay the money directly to ‘C’, it can be called an assignment of the obligation by ‘B’ to ‘A’. It is covered in Section 37 of the Indian Contract Act, 1872. The Section provides that a party can dispense the performance of the contract by the assignment of it to a third party. This concept can also be found in the Transfer of Property Act, 1882 . The use of assignments has increased tremendously in recent times owing to the financial and contractual complexities of the transactions. Usually, it is employed in high-risk transactions that are secured by assigning the contractual rights along with the securities (like hypothecation or mortgage).

The party currently holding the rights and obligations of the existing contract is called the ‘assignor’ and the party to whom they are assigned and taking over the position is called the ‘assignee’. The transfer takes place from the assignor to the assignee. Also, it is pertinent to note that assignment does not affect the rights and responsibilities of the parties involved in any way. These rights and duties remain the same. And even after the transfer, the assignor remains liable if any problems arise unless there was an agreement to the contrary. Thus, the assignment of the contract involves an incorporeal transfer of the rights and obligations. And as per the laws of India, these transfers must be brought onto paper.  

How does assignment of contracts work 

The assignment depends upon several factors including the provisions of the contract entered into by the parties. The original contract may contain a clause that does not permit the assignment or make the consent of the other party necessary before the assignment. The contract can also contain a stipulation that states that the liability of the agreement would lie with the original parties, even after the assignment. This happens in situations where the assignor acts as a guarantor for the performance of duties as per the contract by the assignee. Acting as a guarantor makes the assignor liable. It is also possible that a contract may permit an assignment without any formal notification to the other party. But in this case, it is important for that party to create a ‘Letter of Assignment’ containing the details to notify all other contracting parties. The letter must be signed by both outgoing and incoming parties. 

For example: If ‘A’ and ‘B’ enter into a contract and include a clause that does not allow the assignment of the contract, neither of them can transfer their rights and liabilities to a third party. And if the contract contains a clause that necessitates the requirement of consent, then neither of them can transfer the rights and obligations without the other party’s consent. Also, if ‘A’ decides to assign his obligations to ‘C’ and acts as a guarantor for ‘C’, then also ‘A’ will continue to hold the liability. 

Enforceability of the assignment

Usually, assignments of contract rights and obligations are enforceable. However, under some circumstances, they are not enforced. These are as follows:

• If the provisions of the contract prohibit the assignment of the contract explicitly and it still happens somehow, it will be considered to be void. Such a clause is called an ‘anti-assignment clause’. 
• Sometimes, due to the assignment of contractual rights and obligations, the basics of the contract are altered. In such circumstances, it cannot be considered enforceable. For example, if performance is affected by the assignment, it will probably not be enforced by the court. 
• The assignment will not be enforced if it is illegal or contrary to the law in some or the other way. 

Contracts that can be assigned 

As per Indian law, any kind of contract can be assigned, provided it conforms to the provisions of the contract and is carried out with the consent of the parties involved. Also, for any contract whose foundation lies upon the ‘personal skills’ of the promisor, such a contract cannot be assigned under any circumstances. This is because such a contract depends upon the qualities or qualifications of the promisor only and cannot be found in someone else, thus, the obligations cannot be assigned in such a case. This has also been highlighted by our judiciary that two types of contracts can never be assigned, that are:

• Where the contract is personal in nature.
• Where the assignment of rights is prohibited either by the law or by the contract.

Thus, it is prudence that is followed while deciding the assignability of a contract. It is prudent to explicitly state the conditions regarding assignment in the contract itself, taking due care of the limits placed by the law.  

Who can handle assignment of a contract 

The most competent person to handle the assignment of contract is an attorney. An attorney is a licensed court practitioner who acts as a deputy or the agent of the party he/she is representing in the court of law. Such contracts need professional expertise as they contain some very technical and intricate details that are crucial for the correct and beneficial assignment. 

Types of assignable contracts

As per the common law, the assignment was done by the way of  three kinds of transactions:

• Novation- In simple words, it is an agreement wherein both contracting parties permit the substitution of an existing party with a new one in the contract. Thus, there is a novation of contract where the original party is discharged of its obligations and they are transferred to a new party. This can be called the assignment of contractual obligations. However, there is an essential difference between both. In the assignment, the rights and obligations are transferred from one party to another. But in novation, instead of a transfer, one party substitutes another.  
• Acknowledgment – Where both the parties acknowledge that the interests in the contract can be assigned to a third party in the contract, then the assignment can take place with the consent of both. 
• Power of attorney – It is a legal document that allows a person to appoint someone to organise or manage various affairs including personal and financial. Thus, in a way it is like appointing an agent to conduct professional transactions, settle claims and cater to business demands.

As per the existing laws in India, there are broadly two types of assignment. 

• Legal – A legal assignment is the one that is carried out as per Section 130 of the Transfer of Property Act, 1882 . it is characterised by all the formalities, intention to assign, communication to the assignee, and notice to the debtor. In this, a proper formal agreement is drafted giving assent to the assignment, as per the procedure laid down by the law. The consent of the party is sought first and a notice is sent. Proper communication is sent to the assignee as well. Finally, with all the formalities done, the assignment is carried out. 
• Equitable – An equitable assignment holds good only in equity and not in the eyes of law. It can be related to a transfer of future benefits which is not enforceable by law. In respect of equitable charges attached to a property, the courts are bound to follow the laws laid down. Thus, as held in B.N. Railway Employees’ Urban Bank v. Seager (1941), an equitable assignment can be created only by a written document as per the provisions of the Transfer of Property Act, 1882. 

Modes of assignment 

The assignment of contractual rights and liabilities has been covered under Section 130 of the Transfer of Property Act, 1882 under the heading of ‘actionable claim’. An actionable claim can be transferred simply by the execution of a written instrument. Nothing more is required. The contract permitting assignment must be clearly laid down, strictly adhering to the provisions of this Section. The intention to assign must be clear and certain. Under Indian property laws, a deed is required for the assignment. And this deed must be duly stamped. However, stamp duty is extremely high in India. Also, it is a subject that falls in the concurrent list. So when it is legislated on by both centre and states, it leads to variations and there is no uniformity. This acts as a hindrance in the way of assignment. 

Validity of part-assignment

In the case of Doraisami v. Doraisami (1924), following the English precedent, it was held that if there is an assignment of a debt, the transfer must be of the whole debt and not just a portion of it. Thus, part-assignment was not recognised. However, in the subsequent case of Rajamier v. Subramaniam (1928) , the previous judgement was overruled. It was recognized that even though part-assignment was not recognised in the English common law, part-assignment of debt was a valid transfer as it was held to be good in equity. However, it was also laid down that in such part-assignments, while enforcing a claim, it was necessary to implead the owner of the rest of the portion as well. It was observed that no such distinction was made in the Transfer of Property Act, 1882. Thus, both may be transferred under the term ‘actionable claims’. 

However, the only problem that persists is presented by Order 2 Rule 2 of the Code of Civil Procedure, 1908. As per this, a single cause of action cannot be allowed to be split into many. Thus, it may prevent the owner of a part of the debt from enforcing his rights. Thus, to avoid this, the lenders often submit a substitution claim or notice in the court so that this provision is not applied. 

Assigning intellectual property 

Assignment of intellectual property implies the transfer of the owner’s rights in copyrights, patents, trade secrets, trademarks, and such other intangible properties. Many times, companies look to sell or transfer their intellectual property because an excess of these can prove to be a burden for them. Maintaining intellectual property requires continuous registrations, defending suits against third-party claims or marketing, and creating a finished product. Thus, such transfers can generate good profit for the company and save it from unnecessary expenditure. On the other hand, several companies look for purchasing such property to provide an impetus to their growth. Thus, when intellectual property is assigned, all the rights, titles, and interests with respect to it are transferred to the assignee from the assignor.  

Assignment of contract in real estate 

The use of assignments in real estate is known as ‘real estate wholesaling’ . As per this, the real estate dealers instead of going by the conventional way of buying and selling the house, enter into a contract and then reassign it to another buyer so as to avoid the additional costs and pocket the profit earned in doing so. This is possible because a real estate purchase agreement does not contain a binding obligation to actually buy the property. Such an agreement is called an ‘Assignment of Real Estate Purchase and Sale’ agreement. Thus, here the assignor merely acts as a middleman, selling their right to buy the property with an equitable interest, i.e. in exchange for an assignment fee from the assignee, who is the ultimate buyer of the property.

Alternatives to assignment of contract 

There are certain other types of transfers that operate as an alternative to assignment. 

They are as follows:

• Licensing- It is an agreement under which a party owning the rights over the property (for example – owning patent rights in case of intellectual property) leases those rights to another, without actually selling or assigning them. Thus, the second party gets a licence to use those rights owned by the first party, for its benefit.  
• Delegation- Delegation basically implies appointing someone else to do the work for you. For example, ‘A’ gets a contract to cut the grass from ‘B’s garden. ‘A’ might delegate the work to ‘C’ without actually assigning the contract to him. But ‘A’ will still control the work and receive the payment. 

Case laws on assignment of contract 

Kapilaben and ors. v. ashok kumar jayantilal sheth through poa gopalbhai madhusudan patel and ors., (2019), facts of the case.

In this case, the appellants here had executed an agreement to sell in 1986 in favour of some of the respondents. The respondents had paid only a portion of the consideration amount. Thereafter, the original buyers, i.e. the respondents executed another agreement to sell in 1987 in respect of the same property in favour of Respondent 1 who was not included in the agreement of 1986. Subsequently, a dispute arose among the parties, and Respondent 1 filed a petition against both the original sellers and buyers seeking specific performance of the 1987 agreement. The petition was dismissed by a trial court citing that the original buyers could not have transferred the contract and assigned their obligation to a third party without the written consent of the original seller. Additionally, there was no evidence suggesting that the seller’s consent was taken. However, the decision was overruled by the High Court of Gujarat. Later on, the matter went to the Supreme Court of India

Issue involved in the case

Was the assignment of obligations by the original buyers to Respondent 1 without the consent of the original seller valid? 

Judgment of the Court

The Supreme Court laid down the following principles in its judgment:

• Assignment of contractual liabilities, where the parties agree to substitute the old contract with a new one where the same responsibilities are transferred to another party is called novation. However, this assignment cannot occur without the consent of the other party to the contract. 
• The rights and obligations under a contract are freely assignable unless the contract is personal in nature or is prohibited by the law. 
• It was finally held that an assignment cannot be held valid just because it is not explicitly prohibited by the provisions of the contract. In order to classify an interest in the contract to be assignable, the terms of the contract and circumstances must be taken into consideration to infer whether the pirates intended to make the interests assignable.

Robinson v. Davison, (1871) 

In this case , the defendant’s wife had promised to play the piano at a concert. However, she failed to perform owing to her bad health. As a result, the plaintiff sued for compensation. 

Issues involved in the case

• Can the plaintiff seek compensation in the present case?
• Could assignment of contract be allowed to a third party?

The Court held that the performance of the present contract depended upon the personal skills of the defendant’s wife, which in turn depended on her good health. Thus, non-performance due to ill-health discharged the contract. Hence, no compensation could be claimed. Also, since the contract was based on the promisor’s personal skills and capability, it could not be assigned to a third party. 

Conclusion 

Assignment of contracts has become a common phenomenon in recent times. However, it is important that the assignments conform to the provisions laid down by the law. It must be carried out with the consent of the contracting parties. There are certain cases where the assignment is not possible like the contracts which are personal in nature, where there is an explicit provision in the contract to prohibit it, or when the law does not allow it in particular cases. These conditions must be adhered to. In fact, our law recognises both legal and equitable assignments. These assignments are covered under the provisions of the Transfer of Property Act, 1882, and the Indian Contract Act, 1872. Thus, all the contracts where the contractual rights and obligations are transferred to a third party are valid, provided all the conditions laid down by law are followed. 

References 

• http://docs.m anupatra.in/newsline/articles/Upload/E915DA6B-361C-493B-91D1-96D8EB703128.pdf
• https://www.thebalancesmb.com/what-is-an-assignment-of-contract-in-a-business-agreement-4587747
• https://www.nolo.com/legal-encyclopedia/assignment-of-contract-basics-32643.html
• https://www.contractscounsel.com/b/assignment-of-contract  

Students of  Lawsikho courses  regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skills.

LawSikho has created a telegram group for exchanging legal knowledge, referrals, and various opportunities. You can click on this link and join:

https://t.me/lawyerscommunity

Follow us on  Instagram  and subscribe to our  YouTube  channel for more amazing legal content.

RELATED ARTICLES MORE FROM AUTHOR

Khazan singh and ors. vs. state of uttar pradesh and ors. (air 1974 sc 669), illegitimate children under muslim law, radhakanta deb & anr vs. commissioner of hindu religious endowments, orissa (1981), leave a reply cancel reply.

Save my name, email, and website in this browser for the next time I comment.

3-Day Bootcamp (LIVE only) on

How you can use labour law skills to go from HR manager to business leader

Register now

Thank you for registering with us, you made the right choice.

Congratulations! You have successfully registered for the webinar. See you there.

• Skip to primary navigation
• Skip to main content
• Skip to primary sidebar
• Skip to footer

Law School Toolbox®

All the tools you need for law school success

Five Tips for a Great Legal Writing Assignment

September 25, 2012 By Lee Burgess 2 Comments

• Follow the format outlined by your professor. It is likely your legal writing professor has given you instructions for the overall format of your legal writing assignment. In addition, your professor may have given you formatting instructions for the body of your assignment, such as that you need to follow IRAC. Whatever the instructions, follow them . Sure, you may think it is an overly formal or a frustrating way to write—but to be honest, no one cares. You need to write for your professor . It is more important to write in the way your professor has outlined, than as you personally prefer. And it is not going to be the last time your writing will need to conform to someone else’s rules. As a working attorney you often need to write in the format requested by your boss or even by the court. So get used to it!
• Remember, your writing doesn’t need to be full of legalese—the best legal writing is often simple! So many law students make the mistake of thinking that to “sound like a lawyer” they must use every possible legal term out there. This is just not the case. Often the most effective legal writing is very clear and concise and only uses legal terms or “legalese” when appropriate (say, when you are using a term of art). It is also important to work on writing in a clear, concise way because your assignments may have maximum word count. So using extra words to sound “more professional” won’t really help your grade in the end.
• Answer the question asked by your assignment. Often students get so caught up in writing their assignment that they forget to focus on the question that was asked of them. It is important to read and re-read (and even read again) the assignment sheet. You don’t want to make a mistake and write something off topic. Remember, answering the question is key to getting a good grade!
• Plan before you write. A great legal writing assignment is organized. And for most of us this means that you need to plan your paper just as you would plan an essay or any other project. Organization is key and it takes time to sit with the research and develop your answer. Make sure you build this time into your plan of how you are going to get your assignment done.
• Proofread and double-check citations. As an attorney-in-training, it is very important to present yourself in a professional way. That means that you need to proofread your assignments to present yourself in a professional way to your professor as well. If your assignment is riddled with typos, it is distracting for the professor and likely will cause your grade to drop. Also, students often are lax when handling citations. You are typically graded on the accuracy of your citations. Citations are not hard, but you must be detail oriented and look things up! I have seen many a legal writing grade go down because students didn’t spend adequate time or energy on citations. Don’t let this happen to you.

Legal writing, like most things, gets easier the more that you do it. So do every practice assignment assigned and get as much feedback as you can. This will help you become an excellent legal writer, which is a critical skill in our profession.

Check out these other helpful posts:

• Surviving the first weeks of law school .
• Law school exam prep 101 .
• Getting feedback on past exams is critical .
• Pay attention in class, it can save you time !

Are you on our mailing list? Sign up now and we’ll send you lots of great stuff, totally free!

Image by nh313066 via stock.xchng .

Looking for some help to do your best in law school? Find out about our law school tutoring options.

About Lee Burgess

Lee Burgess, Esq. is the co-founder of the Law School Toolbox , a resource for law students that demystifies the law school experience and the Bar Exam Toolbox , a resource for students getting ready for the bar exam. Lee has been adjunct faculty at two bay area law schools teaching classes on law school and bar exam preparation. You can find Lee on Twitter at @leefburgess , @lawschooltools , & @barexamtools .

Reader Interactions

Thank very much for the tips i have just read they been beneficial to me because am a distance law school student.

I need more guide to legal writing because am lecturing this course for Magistrates

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Want Better Law School Grades?

Sign Up for Our Exam Tips!

• Privacy Policy
• Terms & Conditions

Copyright 2024 Law School Toolbox®™

• Skip to primary navigation
• Skip to main content
• Skip to primary sidebar
• Skip to footer

Conventus Law

More results...

UK – Legal Terms Explained: Assignment.

April 18, 2023 by Rohin Pujari

What is assignment?

An assignment is the transfer of an interest from one party (“ assignor ”) to another (“ assignee ”). Assignment allows the assignor to transfer the benefit of a contract to the assignee. For example, the tenant of recently built office premises may transfer the benefit of a collateral warranty originally granted in its favour to a subsequent tenant.

Without express words, assignment usually involves an assignment of accrued and future rights. Clear words are required to assign only future rights under a contract ( Energy Works (Hull) Ltd v MW High Tech Projects UK and others  [2020] EWHC 2537 (TCC)).

Assignment in a construction context typically refers to a legal or equitable assignment (although assignment can also occur by other means, e.g. operation of law). A key difference between legal and equitable assignments is that, in the case of a legal assignment, the assignee may enforce any assigned rights in its own name. In contrast, following an equitable assignment, the assignee would need to join the assignor in any action brought to enforce its rights.

To take effect as a legal assignment under English law, an assignment must comply with section 136(1) of the Law of Property Act 1925 (“ LPA 1925 “). This requires the assignment to be: (i) in writing; (ii) absolute; and (iii) expressly notified in writing to the other party to the contract (“ debtor “). In practice, parties tend to effect a legal assignment by way of an assignment agreement or deed of assignment to ensure that these requirements are satisfied.

However, if the parties fail to meet any of the requirements set out in LPA 1925 the assignment will usually have equitable effect. Equitable assignments may arise orally or in writing, and whilst recommended, there is no need to notify the debtor, provided a clear intention to assign can be established. Neither legal nor equitable assignments generally require the debtor’s consent.

  Assignment v novation

Although both terms are sometimes used interchangeably, assignment should be distinguished from novation. The most notable difference is that assignment only transfers the benefit of a contract (e.g. a warranty that works have been carried out to the required standard), whereas a novation transfers both the benefit and the burden (e.g. an obligation to pay for a service). As novation also requires the consent of all parties, it will typically be effected by a tripartite agreement between the novating party, the party to whom the contract is to be novated, and the counterparty to the relevant contract.

  Some issues concerning assignment

• Restrictions on assignment  – Unless there is an express prohibition in the contract, the parties will usually be free to assign the benefit of a contract. However, many standard form building contracts, including the JCT Design and Build Contract, prohibit assignment, or allow it only subject to certain conditions. In this regard, a developer may seek to amend the contract to reduce any restrictions on their ability to assign. In contrast, a contractor may seek to limit any rights to assign, for example by specifying the number of permitted assignments. This is often linked to the contractor’s professional indemnity insurance terms which may provide for restricted cover in respect of successive assignments.
• Ineffective assignment where prohibited  – If a party purports to assign a right in contravention of an assignment clause, the assignment will only be effective as between the assignee and the assignor, and will not be enforceable against the debtor.
• Means of assignment  – A clause in a contract permitting assignment is not sufficient to effect an assignment. There must be a separate document or oral agreement to show the assignor’s intention to assign ( Allied Carpets Group Plc v Macfarlane (t/a Whicheloe Macfarlane Partnership)  [2002] EWHC 1155 (TCC)).

* This is an updated version of an article originally published as part of the ‘Legal Terms Explained’ series of  Construction Law .

For further information, please contact:

James Doe , Partner, Herbert Smith Freehills

[email protected]

Register for your monthly Asia legal updates from Conventus Law

Error: Contact form not found.

New UK Government Announces Intention To Continue With Reforms To Arbitration Act 1996 And Publishes Text Of New Bill.

UK Consumer Protection: Compliance Guidance On Pricing, Urgency And Green Claims.

General Counsel Challenges: Budget Cuts And Managing Law Firms.

- sacha kirk - co-founder & cmo,.

CONVENTUS LAW

CONVENTUS DOCS CONVENTUS PEOPLE

3/f, Chinachem Tower 34-37 Connaught Road Central, Central, Hong Kong

[email protected]

• Practical Law

Assignment of a claim or cause of action

Practical law uk practice note 1-522-7861  (approx. 32 pages), get full access to this document with a free trial.

Try free and see for yourself how Practical Law resources can improve productivity, efficiency and response times.

About Practical Law

This document is from Thomson Reuters Practical Law, the legal know-how that goes beyond primary law and traditional legal research to give lawyers a better starting point. We provide standard documents, checklists, legal updates, how-to guides, and more.

650+ full-time experienced lawyer editors globally create and maintain timely, reliable and accurate resources across all major practice areas.

83% of customers are highly satisfied with Practical Law and would recommend to a colleague.

81% of customers agree that Practical Law saves them time.

• Property: restructuring & insolvency
• Court proceedings: restructuring & insolvency
• Restructuring and Insolvency Transactions
• Regulation, Powers and Duties of Insolvency Practitioners

How to write a case brief for law school: Excerpt reproduced from Introduction to the Study of Law: Cases and Materials,

Third Edition (LexisNexis 2009) by Michael Makdisi & John Makdisi

C. HOW TO BRIEF

The previous section described the parts of a case in order to make it easier to read and identify the pertinent information that you will use to create your briefs. This section will describe the parts of a brief in order to give you an idea about what a brief is, what is helpful to include in a brief, and what purpose it serves. Case briefs are a necessary study aid in law school that helps to encapsulate and analyze the mountainous mass of material that law students must digest. The case brief represents a final product after reading a case, rereading it, taking it apart, and putting it back together again. In addition to its function as a tool for self-instruction and referencing, the case brief also provides a valuable “cheat sheet” for class participation.

Who will read your brief? Most professors will espouse the value of briefing but will never ask to see that you have, in fact, briefed. As a practicing lawyer, your client doesn’t care if you brief, so long as you win the case. The judges certainly don’t care if you brief, so long as you competently practice the law. You are the person that the brief will serve! Keep this in mind when deciding what elements to include as part of your brief and when deciding what information to include under those elements.

What are the elements of a brief? Different people will tell you to include different things in your brief. Most likely, upon entering law school, this will happen with one or more of your instructors. While opinions may vary, four elements that are essential to any useful brief are the following:

(a) Facts (name of the case and its parties, what happened factually and procedurally, and the judgment)

(b) Issues (what is in dispute)

(c) Holding (the applied rule of law)

(d) Rationale (reasons for the holding)

If you include nothing but these four elements, you should have everything you need in order to recall effectively the information from the case during class or several months later when studying for exams.

Because briefs are made for yourself, you may want to include other elements that expand the four elements listed above. Depending on the case, the inclusion of additional elements may be useful. For example, a case that has a long and important section expounding dicta might call for a separate section in your brief labeled: Dicta. Whatever elements you decide to include, however, remember that the brief is a tool intended for personal use. To the extent that more elements will help with organization and use of the brief, include them. On the other hand, if you find that having more elements makes your brief cumbersome and hard to use, cut back on the number of elements. At a minimum, however, make sure you include the four elements listed above.

Elements that you may want to consider including in addition to the four basic elements are:

(e) Dicta (commentary about the decision that was not the basis for the decision)

(f) Dissent (if a valuable dissenting opinion exits, the dissent’s opinion)

(g) Party’s Arguments (each party’s opposing argument concerning the ultimate issue)

(h) Comments (personal commentary)

Personal comments can be useful if you have a thought that does not fit elsewhere. In the personal experience of one of the authors, this element was used to label cases as specific kinds (e.g., as a case of vicarious liability) or make mental notes about what he found peculiar or puzzling about cases. This element allowed him to release his thoughts (without losing them) so that he could move on to other cases.

In addition to these elements, it may help you to organize your thoughts, as some people do, by dividing Facts into separate elements:

(1) Facts of the case (what actually happened, the controversy)

(2) Procedural History (what events within the court system led to the present case)

(3) Judgment (what the court actually decided)

Procedural History is usually minimal and most of the time irrelevant to the ultimate importance of a case; however, this is not always true. One subject in which Procedure History is virtually always relevant is Civil Procedure.

When describing the Judgment of the case, distinguish it from the Holding. The Judgment is the factual determination by the court, in favor of one party, such as “affirmed,” “reversed,” or “remanded.” In contrast, the Holding is the applied rule of law that serves as the basis for the ultimate judgment.

Remember that the purpose of a brief is to remind you of the important details that make the case significant in terms of the law. It will be a reference tool when you are drilled by a professor and will be a study aid when you prepare for exams. A brief is also like a puzzle piece.

The elements of the brief create the unique shape and colors of the piece, and, when combined with other pieces, the picture of the common law takes form. A well-constructed brief will save you lots of time by removing the need to return to the case to remember the important details and also by making it easier to put together the pieces of the common law puzzle.

D. EXTRACTING THE RELEVANT INFORMATION: ANNOTATING AND HIGHLIGHTING

So now that you know the basic elements of a brief, what information is important to include under each element? The simple answer is: whatever is relevant. But what parts of a case are relevant? When you read your first few cases, you may think that everything that the judge said was relevant to his ultimate conclusion. Even if this were true, what is relevant for the judge to make his decision is not always relevant for you to include in your brief. Remember, the reason to make a brief is not to persuade the world that the ultimate decision in the case is a sound one, but rather to aid in refreshing your memory concerning the most important parts of the case.

What facts are relevant to include in a brief? You should include the facts that are necessary to remind you of the story. If you forget the story, you will not remember how the law in the case was applied. You should also include the facts that are dispositive to the decision in the case. For instance, if the fact that a car is white is a determining factor in the case, the brief should note that the case involves a white car and not simply a car. To the extent that the procedural history either helps you to remember the case or plays an important role in the ultimate outcome, you should include these facts as well.

What issues and conclusions are relevant to include in a brief? There is usually one main issue on which the court rests its decision. This may seem simple, but the court may talk about multiple issues, and may discuss multiple arguments from both sides of the case. Be sure to distinguish the issues from the arguments made by the parties. The relevant issue or issues, and corresponding conclusions, are the ones for which the court made a final decision and which are binding. The court may discuss intermediate conclusions or issues, but stay focused on the main issue and conclusion which binds future courts.

What rationale is important to include in a brief? This is probably the most difficult aspect of the case to determine. Remember that everything that is discussed may have been relevant to the judge, but it is not necessarily relevant to the rationale of the decision. The goal is to remind yourself of the basic reasoning that the court used to come to its decision and the key factors that made the decision favor one side or the other.

A brief should be brief! Overly long or cumbersome briefs are not very helpful because you will not be able to skim them easily when you review your notes or when the professor drills you. On the other hand, a brief that is too short will be equally unhelpful because it lacks sufficient information to refresh your memory. Try to keep your briefs to one page in length. This will make it easy for you to organize and reference them.

Do not get discouraged. Learning to brief and figuring out exactly what to include will take time and practice. The more you brief, the easier it will become to extract the relevant information.

While a brief is an extremely helpful and important study aid, annotating and highlighting are other tools for breaking down the mass of material in your casebook. The remainder of this section will discuss these different techniques and show how they complement and enhance the briefing process.

Annotating Cases

Many of you probably already read with a pencil or pen, but if you do not, now is the time to get in the habit. Cases are so dense and full of information that you will find yourself spending considerable amounts of time rereading cases to find what you need. An effective way to reduce this time is to annotate the margins of the casebook. Your pencil (or pen) will be one of your best friends while reading a case. It will allow you to mark off the different sections (such as facts, procedural history, or conclusions), thus allowing you to clear your mind of thoughts and providing an invaluable resource when briefing and reviewing.

You might be wondering why annotating is important if you make an adequate, well-constructed brief. By their very nature briefs cannot cover everything in a case. Even with a thorough, well-constructed brief you may want to reference the original case in order to reread dicta that might not have seemed important at the time, to review the complete procedural history or set of facts, or to scour the rationale for a better understanding of the case; annotating makes these tasks easier. Whether you return to a case after a few hours or a few months, annotations will swiftly guide you to the pertinent parts of the case by providing a roadmap of the important sections. Your textual markings and margin notes will refresh your memory and restore specific thoughts you might have had about either the case in general or an individual passage.

Annotations will also remind you of forgotten thoughts and random ideas by providing a medium for personal comments.

In addition to making it easier to review an original case, annotating cases during the first review of a case makes the briefing process easier. With adequate annotations, the important details needed for your brief will be much easier to retrieve. Without annotations, you will likely have difficulty locating the information you seek even in the short cases. It might seem strange that it would be hard to reference a short case, but even a short case will likely take you at least fifteen to twenty-five minutes to read, while longer cases may take as much as thirty minutes to an hour to complete. No matter how long it takes, the dense material of all cases makes it difficult to remember all your thoughts, and trying to locate specific sections of the analysis may feel like you are trying to locate a needle in a haystack. An annotation in the margin, however, will not only swiftly guide you to a pertinent section, but will also refresh the thoughts that you had while reading that section.

When you read a case for the first time, read for the story and for a basic understanding of the dispute, the issues, the rationale, and the decision. As you hit these elements (or what you think are these elements) make a mark in the margins. Your markings can be as simple as “facts” (with a bracket that indicates the relevant part of the paragraph). When you spot an issue, you may simply mark “issue” or instead provide a synopsis in your own words. When a case sparks an idea — write that idea in the margin as well — you never know when a seemingly irrelevant idea might turn into something more.

Finally, when you spot a particularly important part of the text, underline it (or highlight it as described below).

With a basic understanding of the case, and with annotations in the margin, the second read-through of the case should be much easier. You can direct your reading to the most important sections and will have an easier time identifying what is and is not important. Continue rereading the case until you have identified all the relevant information that you need to make your brief, including the issue(s), the facts, the holding, and the relevant parts of the analysis.

Pencil or pen — which is better to use when annotating? Our recommendation is a mechanical pencil. Mechanical pencils make finer markings than regular pencils, and also than ballpoint pens. Although you might think a pencil might smear more than a pen, with its sharp point a mechanical pencil uses very little excess lead and will not smear as much as you might imagine. A mechanical pencil will also give you the freedom to make mistakes without consequences. When you first start annotating, you may think that some passages are more important than they really are, and therefore you may resist the urge to make a mark in order to preserve your book and prevent false guideposts. With a pencil, however, the ability to erase and rewrite removes this problem.

Highlighting

Why highlight? Like annotating, highlighting may seem unimportant if you create thorough, well-constructed briefs, but highlighting directly helps you to brief. It makes cases, especially the more complicated ones, easy to digest, review and use to extract information.

Highlighting takes advantage of colors to provide a uniquely effective method for reviewing and referencing a case. If you prefer a visual approach to learning, you may find highlighting to be a very effective tool.

If annotating and highlighting are so effective, why brief? Because the process of summarizing a case and putting it into your own words within a brief provides an understanding of the law and of the case that you cannot gain through the process of highlighting or annotating.

The process of putting the case into your own words forces you to digest the material, while annotating and highlighting can be accomplished in a much more passive manner.

What should you highlight? Similar to annotating, the best parts of the case to highlight are those that represent the needed information for your brief such as the facts, the issue, the holding and the rationale.

Unlike annotating, highlighting provides an effective way to color code, which makes referring to the case even easier. In addition, Highlighters are particularly useful in marking off entire sections by using brackets. These brackets will allow you to color-code the case without highlighting all the text, leaving the most important phrases untouched for a more detailed highlight marking or underlining.

Highlighting is a personal tool, and therefore should be used to the extent that highlighting helps, but should be modified in a way that makes it personally time efficient and beneficial. For instance, you might combine the use of annotations in the margins with the visual benefit of highlighting the relevant text. You may prefer to underline the relevant text with a pencil, but to use a highlighter to bracket off the different sections of a case. Whatever you choose to do, make sure that it works for you, regardless of what others recommend. The techniques in the remainder of this section will describe ways to make full use of your highlighters.

First, buy yourself a set of multi-colored highlighters, with at least four, or perhaps five or six different colors. Yellow, pink, and orange are usually the brightest. Depending on the brand, purple and green can be dark, but still work well. Although blue is a beautiful color, it tends to darken and hide the text.

Therefore we recommend that you save blue for the elements that you rarely highlight.

For each different section of the case, choose a color, and use that color only when highlighting the section of the case designated for that color. Consider using yellow for the text that you tend to highlight most frequently. Because yellow is the brightest, you may be inclined to use yellow for the Conclusions in order to make them stand out the most. If you do this, however, you will exhaust your other colors much faster than yellow and this will require that you purchase an entire set of new highlighters when a single color runs out because colors such as green are not sold separately. If instead you choose to use yellow on a more frequently highlighted section such as the Analysis, when it comes time to replace your yellow marker, you will need only to replace your yellow highlighter individually. In the personal experience on one of the authors, the sections of cases that seemed to demand the most highlighter attention were the

Facts and the Analysis, while the Issues and Holdings demanded the least. Other Considerations and

Procedural History required lots of highlighting in particular cases although not in every case.

Experiment if you must, but try to choose a color scheme early on in the semester and stick with it. That way, when you come back to the first cases of the semester, you will not be confused with multiple color schemes. The basic sections of a case for which you should consider giving a different color are:

(b) Procedural History

(c) Issue (and questions presented)

(d) Holding (and conclusions)

(e) Analysis (rationale)

(f) Other Considerations (such as dicta)

Not all of these sections demand a separate color. You may find that combining Facts and Procedural History or Issues and Holdings works best. Furthermore, as mentioned above, some sections may not warrant highlighting in every case (e.g., dicta probably do not need to be highlighted unless they are particularly important). If you decide that a single color is all that you need, then stick to one, but if you find yourself highlighting lots of text from many different sections, reconsider the use of at least a few different colors. Highlighters make text stand out, but only when used appropriately. The use of many colors enables you to highlight more text without reducing the highlighter’s effectiveness. Three to four colors provides decent color variation without the cumbersomeness of handling too many markers.

Once you are comfortable with your color scheme, determining exactly what to highlight still may be difficult. Similar to knowing what to annotate, experience will perfect your highlighting skills. Be careful not to highlight everything, thus ruining your highlighters’ effectiveness; at the same time, do not be afraid to make mistakes.

Now that we have covered the basics of reading, annotating, highlighting, and briefing a case, you are ready to start practicing. Keep the tips and techniques mentioned in this chapter in mind when you tackle the four topics in the remainder of this book. If you have difficultly, refer back to this chapter to help guide you as you master the case method of study and the art of using the common law.

More Helpful Links

The american legal system, how to brief a case, how to read a casebook 101, top 20 things you need to know about law school, learn to spot issues like a lawyer, why an internet search is not legal research, why go to law school, what’s the most challenging part of law school, what advice would you give yourself about law school.

How to Write a Law Assignment

Table of Contents

Mastering the Art of Writing Law Assignments

What types of law assignments exist, skills to succeed, how to write a law assignment stage-by-stage, pre-writing stage:, here is what your outline may look like:, let’s talk in detail about the exact process of law essay writing, how to avoid mistakes, additional sources.

Summary: Writing a law assignment involves a step-by-step process: introduction, body paragraphs, supporting evidence, counter-arguments, and conclusion. Proper citation, referencing, and proofreading are essential.

Legal studies were, are, and always will be an essential discipline for society and its development. Law students pursue a legal education to become lawyers, judges, advocates, or other legal professionals. They study various legal topics, including contracts, torts, criminal law, and constitutional law. Law students are typically required to complete various assignments as part of their coursework, including legal research papers, case briefs, law essay writing, and moot court arguments.

Law assignments are vital to legal education and are critical in helping students develop their skills. “The major law assignment styles aim to improve your analytical skills, your ability to apply legal principles and theory, and to write simply and concisely”. These tasks will for sure help in your future career. Therefore, it is important to understand how to write a law assignment properly.

This blog post provides tips and guidelines to help you confidently approach your law assignments and produce high-quality work that meets the standards of the legal profession. AssignmentBro is ready to help you understand how to write a clear and effective law assignment.

There are a wide variety of law assignments. It all depends on the discipline and other details of your specific studies. Here are some examples:

• Case briefs involve analyzing and summarizing a specific legal case. Students are required to identify the key issues, relevant facts, applicable laws, the reasoning of the court, and the final decision.
• Research papers demand law students to delve deep into a specific legal topic or issue. They involve extensive research, analyzing relevant statutes and case law, and presenting arguments based on scholarly sources. Research papers often require a thesis statement, literature review, methodology, analysis, and conclusion.
• Essays in law focus on exploring and presenting arguments on a particular legal question or issue. Essays allow students to showcase their understanding of legal principles and ability to analyze and argue a position critically.
• Moot court briefs simulate the preparation of written arguments for a hypothetical appellate court case. Students must study the legal concerns, create compelling arguments, and reference pertinent legal sources to defend their position.
• Legal memoranda or legal analysis must contain a detailed analysis of the applicable laws and their application to the case. Memoranda are frequently used in legal studies, particularly for public law assignments.
• Case comments are when students are expected to summarize the key aspects of the case, discuss its implications, and provide their insights on the topic.

Sounds huge. No worries, though! AssignmentBro is right here to provide you with all the information you need to succeed in your law assignment writing and to provide you with law assignment writing help.

To work in law, you need different soft and hard skills to be a lawyer or an advocate. What about the specific skills for writing assignments? Let’s talk about them.

Writing and presenting excellent legal essays may require the following:

• Analytical Thinking: Law assignments require the ability to critically analyze legal issues, identify relevant facts, and apply legal principles to reach well-reasoned conclusions.
• Research Capabilities: Effective research capabilities involve using legal databases, understanding citation formats, and evaluating the credibility and authority of sources.
• Articulation of Arguments: Students should present their analysis and reasoning logically and coherently with excellent communication and presentation skills.
• Understanding of Legal Concepts: A solid understanding of legal concepts and principles is crucial for writing law assignments.
• Legal Writing Style: Adherence to a specific writing style that is concise, precise, and authoritative is vital. Proper citation of legal sources using recognized citation formats (such as Bluebook citation style, APA, or MLA) is also essential.
• Critical Analysis of legal arguments, evaluating strengths and weaknesses, and offering balanced assessments are often involved in law tasks.
• Attention to Detail: Careful attention to detail enhances the credibility and professionalism of the assignment.
• Time Management: The quality of the final submission is ensured by sticking to deadlines, leaving enough time for revisions and editing.

By honing these skills and applying them consistently, any student can improve their ability to write a law assignment more effectively.

The legal task must go through several critical stages to be well-structured and successful. Here is a step-by-step guide on how to write a law assignment:

• Carefully read and comprehend the assignment instructions provided by your lecturer or professor. Pay attention to the requirements, word limit, formatting guidelines, and specific questions or prompts.
• Choose your assignment subject. If you struggle with choosing the right one, glance at the law topics we created.
• Before starting the writing process, begin background research to become familiar with the subject and find pertinent legal statutes, cases, and theories. You can use this to develop a solid knowledge base to support your arguments.
• As you research, take notes! Record key points, relevant quotations, and references to legal authorities.
• Create a clear thesis statement or argument based on your initial research and grasp of the subject. It will be your writing’s direction. The thesis should present your main point or position on the discussed legal issue.

Create an outline to structure your thoughts and provide a roadmap for your assignment. 

An outline ensures a logical flow and allows you to arrange your thoughts. Include the main sections or headings you plan to cover, sub-points, and supporting evidence for each. Here are the elements that should be part of an outline:

• Hook or attention-grabbing statement to engage the reader.
• Background information on the topic to provide context.
• A thesis statement/main argument to clearly state your position/main points.
• Break down your main argument or topic into sub-points.
• Evidence, examples, or relevant legal authorities should support each main argument.
• Under each main argument or point, reference supporting evidence, such as legal precedents, case studies, or relevant legal theories.
• Include an analysis of the evidence, explaining how it supports your argument and strengthens your position.
• Address potential counterarguments or opposing viewpoints related to your main arguments.
• Refute counterarguments with solid reasoning, evidence, or alternative interpretations.
• Summarize the main arguments or points you have discussed throughout your assignment.
• Provide a sense of closure by reflecting on the significance of your findings.

Remember, the outline serves as a guide, and you can adapt it based on your assignment’s specific requirements and the topic’s complexity.

Let’s imagine that you write a criminal law assignment .

I. Introduction

• Definition and overview of criminal law.
• Purpose of the assignment.
• Thesis statement or main argument.

II. Elements of a Crime

• Actus reus: Discussing the physical act or conduct required for a crime.
• Mens rea: Explaining the mental state or intent necessary for criminal liability.
• Causation: Analyzing the causal link between the act and the harm caused.
• Concurrence: Discussing the requirement that the act and intent coincide.

III. Classification of Crimes

• Felonies: Explaining the characteristics and examples of felony offenses.
• Misdemeanours: Discussing the characteristics and examples of misdemeanor offenses.
• Infractions: Explaining the characteristics and examples of minor offenses.

IV. Criminal Defeses

• Justifications: Exploring defenses such as self-defense, necessity, and defense of others.
• Excuses: Discussing defenses like duress, insanity, and intoxication.
• Procedural Defenses: Analyzing defenses related to the rights of the accused, such as unlawful search and seizure, Miranda rights, etc.

V. Criminal Procedure

• Arrest and Search: Discussing the requirements and limitations for lawful arrest and search.
• Due Process: Exploring the constitutional rights of the accused, such as the right to counsel, the right to a fair trial, etc.
• Trial Process: Analyzing the steps involved in a criminal trial, including jury selection, opening statements, presentation of evidence, etc.
• Sentencing: Discussing the factors considered in determining an appropriate sentence for a convicted offender.

VI. Notable Criminal Law Cases

• Analyzing significant criminal law cases that have shaped legal principles or influenced the interpretation of criminal statutes.
• Discussing the impact of these cases on the development of criminal law jurisprudence.

VII. Contemporary Issues in Criminal Law

• Exploring current debates or challenges in criminal law, such as emerging technologies, cybercrimes, or criminal justice reform.
• Analyzing the potential implications and future developments in the field.

VIII. Conclusion

• Summarizing the main points and arguments presented.
• Assessing the effectiveness and significance of criminal law in maintaining social order and protecting individuals’ rights.

It’s important to follow the structure of the assignment:

• Begin with an attention-grabbing opening sentence or hook to engage the reader.
• Provide relevant background information to set the context of the topic.
• Clearly state the purpose of the assignment and what you aim to achieve.
• Conclude the introduction with a concise thesis statement that outlines your main argument or position.
• Ensure your thesis statement is concise, specific, and directly addresses the main focus of your assignment.
• Each body paragraph should focus on a single main point or argument that supports your thesis statement.
• Provide evidence, examples, or legal authorities to support your arguments.
• Break down complex legal concepts or theories into understandable terms.
• Support your arguments with well-reasoned analysis and relevant legal authorities.
• Cite relevant legal statutes, case law, regulations, or academic sources to support your claims.
• Ensure you accurately and appropriately cite your sources using the required citation style (e.g., Bluebook, APA, MLA).
• Anticipate potential counterarguments and address them directly and objectively.
• Summarize the main points or arguments discussed in your assignment.
• Avoid introducing new information in conclusion.
• Create a bibliography of your resources. It will help to avoid plagiarism. AssignmentBro supplies you with an incredible citation generator tool if you have trouble with quotations.
• Allocate sufficient time for proofreading and editing to eliminate spelling, grammar, and punctuation errors. This stage is crucial and should not be avoided!
• Review the overall structure, coherence, and clarity of your writing.
• Ensure consistency in formatting, citation style, and referencing.

We want to highlight that strategy changes depending on the provided requirements. For example, there is also such a thing as an ACT essay. For the ACT essay, you’ll need an introduction, two to three body paragraphs (at least one paragraph for each perspective), and a conclusion.

By following these guidelines, you can succeed in law school essay writing!

Receiving help with legal studies assignments is helpful for developing analytical skills, applying correct legal principles, and writing tasks concisely.

It is not a regular task to write a legal paper. Thus, it’s completely acceptable for some students to make mistakes. We are humans, and we learn through making mistakes. However, it is best to avoid mistakes most students experience to succeed in your assignment.

The next common errors are highlighted:

• Writing in the passive;
• Using ambiguous pronouns;
• Unnecessary wordiness;
• Over-using legalese;
• Neglecting to proofread.

Other mistakes include: making an essay too long or short, drafting a legal essay without arguments, submitting an essay without a bibliography , fluffing the conclusion, etc.

The only way to eliminate mistakes is a dedication to your work and continuous practice! For this reason, It’s crucial to learn how to write a law assignment properly.

Learning more is never too late. Below, we added a few extra resources to help you learn more about legal writing:

• Many Birds, One Stone, Michael R. Smith;
• Legal Writing, Linda H. Edwards;
• Legal Writing in a Nutshell, L.Bahrych and J.Merino;
• Law Assignment Techniques.
• Writing Law Essays, M.Salter and J.Mason.

We hope it will ease your way to success in your legal education. Write a law assignment easily with AssignmentBro!

Our team can aid you with any kind of legal writing. Whether it is a contract law assignment, international law research, or any other kind of legal assignment, we are here to lend you a hand!

Law assignments help develop analytical skills, apply legal principles, and write concisely. They involve various types of writing, including case briefs, research papers, essays, and memoranda.

The pre-writing stage is vital. Even selecting a topic has a significant impact on your paper. For instance, topics in business Law can be really broad, so you should choose wisely.

Avoid mistakes by studying how to write a law assignment. AssignmentBro is always there to help you with any law task!

What Is the Cover Page of an Assignment Without a doubt, if you have already written at least one college assignment, the chances are high that you know a bit about the rules of composing...

What Is the Cover Page of an Assignment Without a doubt, if you have...

When you are facing the challenge of not knowing how to write a research assignment for your school or college class, there are many things that you should consider to make things work...

When you are facing the challenge of not knowing how to write a...

What Is an Abstract? An abstract is a short (generally under 250 words) summary of a larger piece of work, such as a dissertation or research paper. Whether it’s an abstract for a...

What Is an Abstract? An abstract is a short (generally under 250...

Over 1000 students entrusted Bro

We use cookies to give you the best experience possible. By continuing we’ll assume you board with our cookie policy .

Understanding Patent Assignment Agreements

A patent assignment agreement is a legal contract that transfers ownership of a patent or patent application from one entity or individual to another, operating within the framework of intellectual property laws. The agreement defines the specific patents, patent applications, or patent rights being assigned, and outlines the promises and assurances made by the assignor. It also establishes the process for resolving disputes arising from the assignment. By understanding the components, types, benefits, and risks of patent assignment agreements, parties can navigate the assignment process effectively and make informed decisions. To grasp the intricacies of patent assignment agreements, it is essential to examine the nuances of each component.

Table of Contents

What Is a Patent Assignment Agreement?

A patent assignment agreement is a legal contract that transfers ownership of a patent or patent application from one entity or individual to another, thereby conferring the assignee with the rights, interests, and obligations associated with the patent. This agreement operates within the legal framework of intellectual property laws, which govern the creation, protection, and transfer of intellectual property rights. The patent assignment agreement is a key instrument for facilitating the transfer of patent rights, enabling parties to negotiate and agree on the terms and conditions of the transfer. By executing this agreement, the assignor relinquishes their ownership and rights to the patent, while the assignee acquires the same rights, including the right to manufacture, use, and license the patented invention. The agreement provides a clear and binding framework for the transfer of patent rights, guaranteeing that the parties involved are aware of their obligations and responsibilities. Fundamentally, the patent assignment agreement is an essential tool for protecting and exploiting intellectual property, enabling inventors, companies, and individuals to optimize the value of their innovations.

Key Components of the Agreement

Seven essential components form the foundation of a patent assignment agreement, each playing a critical role in ensuring a comprehensive and enforceable transfer of patent rights. These components are carefully crafted to address specific aspects of the assignment, ensuring clarity and precision in the transfer of patent ownership.

Types of Patent Assignments

Patent assignment agreements can take various forms, each tailored to specific circumstances and goals, and understanding the different types of patent assignments is key to executing a successful transfer of patent rights. There are several types of patent assignments, including exclusive and non-exclusive assignments. Exclusive assignments grant the assignee the sole right to exploit the patent, whereas non-exclusive assignments allow the assignor to retain some rights. Another type of patent assignment is the partial assignment, where only a portion of the patent rights are transferred. International transfers are also common, where patent rights are assigned across national borders. In such cases, it is imperative to examine the laws and regulations of the relevant jurisdictions. Additionally, patent assignments can be limited by field of use, territory, or time, allowing the assignor to retain some control over the patent. Moreover, exclusive licenses can be granted, which give the licensee the right to exploit the patent, but the patent owner retains ownership. Understanding the different types of patent assignments is pivotal to executing complex patent transactions.

Benefits of Patent Assignment

By executing a well-structured patent assignment agreement, inventors and patent holders can realize numerous benefits that enhance the value and strategic potential of their intellectual property. One significant advantage is the potential for Increased Revenue through royalties, licensing agreements, or outright sales. By assigning patent rights, inventors can monetize their creations and generate passive income streams. Additionally, patent assignment can facilitate Strategic Partnerships, allowing companies to collaborate on research and development, expand their product offerings, or enter new markets. This can lead to mutual benefits, such as shared resources, reduced development costs, and accelerated innovation. In addition, patent assignment can also provide a competitive advantage by preventing others from using the patented technology, thereby protecting market share and reputation. Overall, a well-crafted patent assignment agreement can tap into the full potential of intellectual property, driving business growth and success. By leveraging these benefits, inventors and companies can capitalize on the value of their patents and stay ahead in today's fast-paced, innovation-driven economy.

Potential Risks and Pitfalls

Inventors and companies must be aware that patent assignment agreements can also harbor hidden dangers, including ambiguity in contract language, unequal bargaining power, and unforeseen consequences that can undermine the very value they seek to protect. These potential risks and pitfalls can lead to Hidden Liabilities, which may not be immediately apparent but can have significant financial implications down the line. For instance, a poorly drafted agreement may fail to address critical issues, such as ownership disputes or territorial restrictions, which can lead to costly litigation . Furthermore, Unforeseen Consequences can arise from agreements that do not account for future developments or changes in the market. This can lead to the loss of valuable intellectual property rights or the creation of unintended obligations. It is crucial to approach patent assignment agreements with caution and a clear understanding of the potential risks involved. By doing so, inventors and companies can mitigate these risks and safeguard that their intellectual property is protected and valued accordingly.

Drafting and Negotiating Strategies

When drafting and negotiating patent assignment agreements, it is vital to carefully consider the inclusion of specific key provisions to safeguard the parties' interests are adequately protected. Effective negotiation techniques are also vital to successfully navigate the assignment process and reach a mutually beneficial agreement. By concentrating on these critical aspects, parties can minimize potential disputes and guarantee a smooth transfer of patent rights.

Key Provisions to Include

Key to the efficacy of a patent assignment agreement are several vital provisions that should be meticulously drafted and negotiated to create a thorough and enforceable contract. Among these, the Assignment Scope provision is fundamental, as it defines the specific patents, patent applications, or intellectual property rights being transferred. This provision should clearly identify the assigned intellectual property, including patent numbers, application serial numbers, and relevant jurisdictions.

Another vital provision is Payment Terms, which outlines the consideration exchanged for the assignment of patent rights. This may include lump-sum payments, royalties, or milestone-based payments. The payment terms should be carefully negotiated to guarantee that the assignor receives fair compensation for the transferred intellectual property. Additionally, the agreement should specify the payment schedule, payment method, and any applicable taxes or fees. By including these key provisions, parties can clarify their rights and obligations, minimizing the risk of disputes and facilitating a successful patent assignment.

Effective Negotiation Techniques

During patent assignment negotiations, a thorough understanding of the intellectual property at stake and a well-thought-out negotiation strategy are crucial to achieving a mutually beneficial agreement. Effective negotiation involves a combination of skills, including active listening, creative leverage, and a deep understanding of the assignment agreement's key provisions. Active listening enables parties to clarify their interests, identify potential points of consensus, and build trust. By carefully considering the other party's needs and concerns, negotiators can create value through creative solutions that meet both parties' interests.

To exercise creative leverage, negotiators should identify potential deal-breakers and use them as bargaining chips to negotiate more favorable terms. This may involve making concessions in non-critical segments to secure key provisions. Additionally, negotiators should be prepared to walk away if the agreement does not meet their minimum requirements, as this can often prompt the other party to reconsider their position. By employing these effective negotiation techniques, parties can navigate complex patent assignment negotiations and achieve an agreement that satisfies their interests.

Frequently Asked Questions

Can a patent assignment agreement be terminated or cancelled?.

A patent assignment agreement can be terminated or cancelled upon occurrence of specific Breach Consequences, as outlined in the Termination Clauses, which may include material breaches, non-payment, or failure to perform contractual obligations.

How Do I Determine the Value of a Patent for Assignment?

To determine the value of a patent for assignment, consider factors such as patent royalties, market demand, and competitive landscape. Conduct a thorough patent valuation analysis, employing methods like cost approach, market approach, and income approach to arrive at a precise valuation.

Are Patent Assignments Publicly Disclosed or Confidential?

Patent assignments can be either publicly disclosed or confidential, depending on the agreement terms. While assignments are typically recorded with the USPTO, sensitive information, such as trade secrets, may remain confidential, unless voluntarily disclosed or revealed through public records.

Can a Patent Be Assigned to Multiple Parties Simultaneously?

In patent law, simultaneous assignment to multiple parties is possible, leading to joint ownership. Co-inventors, for instance, can jointly own a patent, with each owning an undivided interest in the entire patent, unless otherwise specified in the assignment agreement.

Do Patent Assignments Require Approval From Government Agencies?

In general, patent assignments do not require approval from government agencies, although International Regulations and Agency Oversight may apply in specific jurisdictions or circumstances, such as national security reviews or antitrust clearance.