Contracts

Question 1

What is assignment under a contract?

Answer 1

An assignment is a transfer of a right to receive a performance under a contract.

Question 2

What is an obligor?

Answer 2

The party with the obligation to perform.

Question 3

What is an assignor?

Answer 3

The party who assigned the right?

Question 4

What is an assignee?

Answer 4

The party to whom the right was assigned.

Question 5

What is required to make effective assignment of a contract?

Answer 5

1. Owner manifests intention to make a present transfer of the right without further action by the owner and
2. A manifestation of assent is essential

Question 6

True or False: An order by assignee direction an obligor to pay a debt to a third party is a valid assignment?

Answer 6

False. This is not assignment.

Question 7

What is a partial assignment.

Answer 7

A valid assignment. There can be an assignment of a fraction of assignor’s rights.

Question 8

What are the exceptions to the general rule under assignment that all rights are assignable?

Answer 8

1. The assignment would MATERIALLY ALTER the risks to or obligations of the other party to contract.
2. Obligor has a personal interest in rendering the performance in question

Question 9

True or False: An offer can be assigned?

Answer 9

FALSE. But an option can be assigned.

Question 10

What is an assignment for value?

Answer 10

Assignee acquires the assignor’s contractual right(s) in exchange for payment or promise thereof.

Question 11

What is a gratuitous assignment?

Answer 11

The assignor assigns contractual rights to the assignee without consideration for such transfer

• -Obligor = valid and binding
• -Assignor/assignee = law of gifts

Even if there is no delivery, the assignment becomes irrevocable once payment of obligation is made to assignee.