Assignment of rights

Question 1

Assignment of Rights - Gral

Answer 1

• New party introduced to contract who receives pre-existing contractual right OR agrees to perform a pre-existing contractual duty
• For UCC assignment includes rights and duties unless otherwise indicated

Question 2

Assignment of Rights - Timing

Answer 2

• Post contract formation (unlike 3rd party beneficiary)

Question 3

Assignment of Rights - Effect

Answer 3

• Assignor’s rights extinguished (including enforcement action)
• Promisor must be notified before payment If not he can continue to perform for promisee

Question 4

Assignment of Rights - Limitations - Gral rule

Answer 4

• CL: cant assign rights to mere offer, to receive personal services, insurance coverage, expectation of payment from future or executory contract (must have performed obligations)
• UCC: All rights assignable unless otherwise agreed OR burden of risk for other party are materially increased + any assignment provides right to request for Assurance of performance

Question 5

Assignment of Rights - Oral Assigment

Answer 5

• Gral rule: Enforceable BUT revocable - Exceptions:
  1) Interest in land
  2) Interest in goods over $500
  3) Interest in wage assignments

Question 6

Assignment of Rights - UCC HDC exception

Answer 6

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Question 7

Assignment of Rights - Prohibition of Assignment provision - CL

Answer 7

• Gral rule: enforceable - UNLESS assignor has fully performed his obligations and assignment is for right to get paid or to suit for dx for freach of contract

Question 8

Assignment of Rights - Prohibition of Assignment provision - CL - Assignee’s right

Answer 8

• If he didnt knew about prohibition (“innocent”) - can still enforce rights assigned

Question 9

Assignment of Rights - Prohibition of Assignment provision - CL - Application

Answer 9

• Alimony and child support payment
• Wage
• Rights not yet in existence (i.e. expected payment from future contract)
• Right to receive payment from executory personal service contract

Question 10

Assignment of Rights - Prohibition of Assignment provision - UCC

Answer 10

Parties can not prohibit assignment of right once they are not longer executory (prohibition only for performance duties)

Question 11

Assignment of Rights - Mx Assignee Priority

Answer 11

• CL: first in time
• UCC: First to perfect -i.e. first to file financing statement (FS)