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A contract right cannot be assigned when it with materially what?

Increase the burden or risk of the obligor ie: if you give a loan to someone with a great job, and then he assigned it to a bum, that material increases your chances of not being repaid, so the assignment is not effective


What are two examples of when an assignment would not be effective?

Insurance policies and giving credit


Why is an assignment not effective for an insurance policy?

Because those are contacts are done according to the risk of the insurance co relating to the person insured. So the risk of insuring different people is different


The right to be insured is not assignable, but what is assignable in an insurance contract?

The right to benefits of the insurance contract (payment if someone dies or property is destroyed). Reasoning: it doesn't materially increase in the insurer's burden or risk


Why can't personal credit be assigned?

Because that could materially increase the obligor's risk since some people are a bigger credit risk than others. For the same reason mortgages can't be assigned


Is it Possible to just have a partial assignment?

Yes rights can be transferred or divided among several people, or only some rights can be assigned


How can an assignment be revoked?

- assignor tells assignee of revocation
- assignor later assigns the same right to someone else
- death of assignor
- bankruptcy of assignor
- assignor receives the obligor's performance


How can an assignor lose the power to revoke?

When he delivers a token chose to the assignee as evidence of the assignment


What is a token chose?

Physical symbol of an intangible right, like a certificate


If someone revokes an assignment after losing the right to revoke, what happens?

The revocation is still valid, but the revokor breaches and is subject to liability


If an assignor subsequently assigns the same right to someone else, that creates a revocation, but what other problems are involved?

The assignor must pay for his wrongful act, but then there is a question of which assignee has priority


What are The four views on priority for assignees?

- English view: last assignee wins
- New York rule: first assignee wins (first in time is first in right, so it is impossible to give what you don't have). The second only wins if the first was avoidable/uncompleted gift/estoppel was president/a statute says so
- four Horsemen rule: restatement says first wins unless second is BFP and takes all steps proper
- UCC: filing system of notice in a public record office so the first that files prevails
**** regardless of which one is followed, an assignee that gets payment has a stronger equity and therefore prevails


When can an assignor not revoke?

- if the assignment is supported by consideration
- if the assignment is in writing and delivered to the assignee
- if it was a gratuitous assignment
- if it was an oral assignment that materially changed the assignor's position


When does a gratuitous assignment become irrevocable?

On delivery of the gift (when possession is taken), or just delivery of a tangible token, or if the person reasonably changed position in reliance on the gift, if there was a payment or performance from the obligor, if there was a novation


If There is a second or later assignment of the same right, who has priority?

Depends if the assignment is irrevocable or revocable
- irrevocable: the party that was first has priority and the next one gets nothing
- revocable: the party that was last has priority because it revoked the previous assignment