Assignment of Rights and Delegation of Duties

Question 1

Assignment of rights

Answer 1

Not allowed when it materially increases the duty or risk of obligor or materially reduces obligor’s chance of obtaining performance.

Need present intent to transfer the right immediately

If assignment is for consideration, it is irrevocable

Assignee takes all of the rights of assignor as the K stands at time of assignment, but she takes subject to any defenses that could be raised against assignor.

Question 2

Delegation of duties

Answer 2

Generally allowed, except when other party to K has substantial interest in a specific individual’s perforamance.

When obligations are delegated, delegator is not released from liability, so he is still liable if delegate doesn’t perform unless there is a novation

Delegate’s acceptance of a delegation constitutes a promise to perform the delegated duties; promise is enforceable if there is consideration or a consideration substitute

Delegation in K for the sale of goods may be treated by the other pat as creating reasonable grounds for insecurity; the other party may demand assurances from delegate.

Question 3

Assignment of contract

Answer 3

Assignments not limited to contractual rights are generally treated as both an assignment of rights and delegation of duties.