11 What is novation?

A novation is different to an assignment as in a novation there is no assignment of rights and obligations but rather the creation of new rights and obligations in a new agreement. In the formal sense, a third party will become a ‘substituted contracting party’ by a novation of the original agreement. Novation will ordinarily […]

08, 15, 2015
Comments Off on 10 What if the assignee needs to take actionagainst the debtor?

By whiggs

Transfer of financial assets in transactions

10 What if the assignee needs to take actionagainst the debtor?

As we discussed above an assignment for value will be enforceable in equity by the assignee. And, the benefit of a contract is in general assignable in equity and may be enforced by the assignee. The assignor is not a necessary party to enforce the assignment although the assignor ought to ordinarily be joined in […]

08, 15, 2015
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By whiggs

Transfer of financial assets in transactions

9 Notice of assignment

In most large scale financing transactions notice to the underlying debtors is not given by the assignor of the chose in action. This means that the assignment until notice is given to the underlying debtors can only ever be an equitable assignment. There are good reasons for not providing notice to the underlying debtors (such […]

08, 15, 2015
Comments Off on 8 Prohibition on Assignment

By whiggs

Transfer of financial assets in transactions

8 Prohibition on Assignment

Common law assignable without notice A contract may expressly or impliedly authorise the assignment of rights that would not otherwise be assignable. Conversely, the contract may expressly or impliedly prohibit the assignment of rights that are otherwise on their face assignable An attempted assignment of contractual rights in breach of a prohibition on assignment is […]