Assignment of the Rights

Get Started. It's Free
or sign up with your email address
Rocket clouds
Assignment of the Rights by Mind Map: Assignment of the Rights

1. Assignment is the process of assigning the "rights"

2. Rights are freely assignable unless:

2.1. Anti-assignment clause

2.2. Too personal to be assigned

3. Parties in an Assignment

3.1. Obligor- The individual who owes the obligation

3.2. Assignor: The individual who is owed the obligation that transfers it to another

3.3. Assignee is the person to whom the obligation is owed has been transferred to

4. Upon notice from the assignee, the obligor must pay the money to the assignee.

4.1. If the obligor pays the assignor, the obligor must also pay the assignee

5. Once a right is assigned, A has no further interest in the right.

6. When is a writing required?

6.1. If the assignment involves an interest in real property

6.2. assignments of a transfer of an interest in an accounts receivable (Artivle 9 requires the assignor to sign)

6.2.1. Article 9 is not applicable to realty, wages, bank accounts or insurance. These are common law matters.

7. Is the assignment valid?

7.1. R/S An assignment may be assigned unless it would

7.1.1. materially change the duty of the obligor

7.1.2. materially increase the burden or risk imposed upon him or her by the contract

7.1.3. Materially reduces the value of the contract to him or her

7.2. UCC

7.2.1. Assignment may be assigned unless it would Materially change the duty of the other party Increase materially the burden or risk imposed on him/her by the contract impair materially the chance of obtaining return performance.

8. Partial Assignments

8.1. Partial assignments are subject to the same rules as a full assignment

8.1.1. Allowed if not to personal (materially change the duty, burden or value)

9. Successive Assignments

9.1. UCC The rights of the successive assignee are governed by a filing system. The assignee that files first has the priority regardless go whether he received the assignment first and regardless of whether he gave notice of the assignment to the obligor first

9.2. R/S First in time, first in irght Unless the 2nd or 3rd assignee is a Bona fide purchaser for value (Pays in value without notice of the first assignment and either

9.2.1. Obtains payment or other satisfaction of the obligation

9.2.2. Obtains judgment against the obligor

9.2.3. Enters into a new contract (novation from the obligor)

9.2.4. Receives a symbolic writing (bank book or insurance policy)

10. Gratuitous Assignments

10.1. R/S

10.1.1. A gratuitous assignment is irrevocable if in writing (or signed under seal) and delivered or symbolically delivered

10.1.2. A gratuitous assignment is revocable and terminated by the assignor's death or incapacity by a subsequent assignment by the assignor or by notification from the assignor received by the assignee by the obligor

10.1.3. A gratuitous assignement ceases to be revocable to the extent that before the assignee's right is terminated he obtains Payment or satisfaction of the obligation Judgment against the obligor a new contract of the obligot by novation (with consideration, not gratuitous

11. Wage Assignements

11.1. Severely restricted to keep people from losing their wages.

12. Anti-Assignment Clauses

12.1. Common Law

12.1.1. A restriction against an assignment resulted in a breach of contract. If the clause said that an assignment voided the contract, that effect was given.

12.2. UCC

12.2.1. Money Rights? Sale of goods Article 2 Applies goods sold, lease, or services rendered? Article 9 Applies

12.3. Waiver of Defense Clause

12.3.1. Found to be against the public Policy

13. Set off and Recoupment

13.1. Set-off

13.1.1. Comes from other contract or claim, can only be used if it accrued before notice was given to the obligor

13.2. Recoupment

13.2.1. This defense arises out of the assigned contract, can always be used

14. Modification of Assignments

14.1. Allowed, but will give the assignee the rights under the contract as modified