518. Assignment of a contract containing an arbitration clause.

In cases where the benefit of a contract which contains an arbitration clause has been assigned, the issue of the effect of the assignment on the arbitration clause is often also discussed in terms of assignment. However, generally only the benefit and not the burden of a contract is capable of assignment1 and an arbitration agreement creates both benefits and burdens. If the law of assignment is applied without qualification then only the benefits of the arbitration agreement are capable of being transferred to the assignee. The courts have recognised the impracticality of this approach2.

There is no rule of