Assignment & Delegation of Contracts Flashcards
What types of Contracts can’t be assigned or delegated?
A contract may not be assigned or delegated where: (1) the rights and duties are personal in nature, or (2) when the transaction involves a sale of goods, an assignment of rights or delegation of duties that will materially change the non-assigning party’s burden or materially change his changes of obtaining the bargained-for performance.
What are the rights of the assignee against her assignor?
Where the assignor, for consideration, has assigned her rights against an obligor, there is an implied warranty that the obligor has no defenses to the assignor’s claim that are based upon the underlying contract. However, there is no implied warranty as to the obligor’s financial ability to pay the debt.
What are the rights of the non-assigning party against the assignor and delegate?
Where a delegate fails to perform the obligations due to the non-assigning party (the oblige), the non-assigning party can (1) sue the delegate, if there has been an assumption of the delegator’s duties, and (2) sue the delegator.
