Assignment of Rights

Question 1

What contract rights may be assigned

Answer 1

All contractual rights may be assigned, except those that would substantially change an obligor’s duty. The contracts that typically fall into this exception are personal services contract, requirements and output contracts, etc.

Question 2

When Assignments must be in Writing

Answer 2

An assignment does not require a writing except for when regarding wage assignments, interests in land, and security interests.

Assignor must indicate an intent to completely and immediately assign the interest to the assignee. Consideration is not required.

Question 3

When an Assignment is Irrevocable

Answer 3

Irrevocable when it vests; if it is given for consideration, it is irrevocable. Otherwise, revocable except where:

(1) the obligor has already performed;
(2) on delivery of a tangible claim;
(3) assignment of an action is in writing;
(4) estoppel