Commentary

130 Transfer of contractual obligations by novation

BUILDING AND ENGINEERING vol 5
| Commentary

130 Transfer of contractual obligations by novation

| Commentary

J: ASSIGNMENT AND COLLATERAL WARRANTIES

1: ASSIGNMENT

130 Transfer of contractual obligations by novation

It is a general principle of law that a contracting party cannot transfer any of his obligations without the consent of the other party1. Thus the employer cannot divest himself of the obligation to pay, and the contractor cannot divest himself of the obligation to carry out the works2. However, where a purported transfer of obligations is made in contravention of this principle, and the other party acquiesces in it and takes the benefit of the transferee’s performance, he may be estopped from denying that there has been

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