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3 What can be assignment ?

  • Benefits not burdens
  • a contractual obligation cannot be assigned without the consent of the other contracting party; that is, it is not possible to transfer the burden of a contract to a third party other than by novation.
  • When we speak of assignment we are talking about assigning the benefits as we cannot assign burdens – we can only do this by novation
  • NB: Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd [1994] 1 AC 85 referred to – assignment of “the contract“ – we know now that it is trite law that it is impossible to assign “the contract” as a whole, in the sense that phase ie ‘including both burden and benefit’.