Assignment of Rights & Delegation of Duties Flashcards
Assignment Def
An act or manifestation by the owner of a right (assignor) indicating his intent to transfer that right to another person (assignee)
Assignment MUST BE:
Intent to relinquish the right to assignee must be clear and concise
Must not retain any control over assigned right or power of revocation
Must usually expressly indicate relinquishment of control forever
(if one reserves right of control, NO valid assignment)
Future rights are freely assignable, unless the assignment would:
a. materially change the duty of the obligor
b. materially increase burden of risk to obligor
c. impair obligor’s chance of retaining performance
d. materially reduce the value of return performance to obligor; or
e. unless prohibited by law or public policy
Once right is assigned who has standing?
Assignee only
Can you assign right to sue under tort action?
No, prohibited in virtually all states
Delegation
to relieve oneself of a duty of performance under a K
Party may perform through a delegate unless:
otherwise agreed to; or
the other party has a substantial interest in having his original promisor perform the acts prescribed by the K
What type of duty is not delegable?
personal services contract
Why? 13th amdt
Delegation Exam Intro BS
Common law makes it harder to delegate a duty than UCC
Why? b/c most goods are fungible
When you delegate a duty, you have not assigned it
You are not relieved of your obligation
Remain in K similar to a co-signer
Still liable for non-performane