Assignment and novation

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Step-in rights in a collateral warranty

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Practice notes

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Practice notes

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Practice notes

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Most recent Assignment and novation content

Practice notes

Legal and equitable assignment in construction contracts

What is an assignmentAn assignment is the transfer of a right or an interest vested in one party (the assignor) to another party (the assignee), for...

8th Apr

Practice notes

Restrictions on the assignment of rights in construction contracts

An assignment is the transfer of a right or an interest vested in one party (assignor) to another party (assignee), eg the transfer of the employer’s...

8th Apr

Practice notes

Assignment of a collateral warranty

This Practice Note focuses on the assignment of collateral warranties (see Practice Note: What are collateral warranties?). For more detailed guidance...

8th Apr

Practice notes

The 'no loss' defence in construction contracts

A no loss defence often arises due to the nature of the contractual matrix on construction projects. For example, a contract may be novated, the...

8th Apr

Practice notes

CLLS and CIC Novation Agreements

This Practice Note looks at the standard form novation agreements published by the City of London Law Society (CLLS) and the Construction Industry...

8th Apr

Practice notes

Assignment by a funder in construction projects

Banks and other funders frequently take an assignment of the benefit of the suite of construction documents in respect of a development as an...

Produced in partnership with Maxwell Winward 8th Apr

Q&As

Is it possible to get round a prohibition on assignment by taking a charge or other security interest instead?

This Q&A discusses whether or not a clause in a contract between A and B that prohibits B from assigning the contract (ie a non-assignment clause) is...

Produced in partnership with Brian Cain 8th Apr

Practice notes

Novation in construction projects

What is novation?Novation is the transfer of one party’s rights and obligations under a contract to a third party. Novation effectively substitutes a...

7th Apr

Practice notes

Assignment in construction contracts

This Practice Note looks at why assignment of rights is an important issue in construction and when parties might need to assign their rights. It...

22nd Mar

Precedents

Deed of novation by contractor’s administrator

This Deed of novation is made on the [insert day] day of [insert month] 20[insert year]Parties1[insert name of company] (in administration) (Company...

Produced in partnership with Mills & Reeve 5th Mar

Precedents

Deed of novation of a contractor—employer to second employer

This Deed of novation is made the on [insert day] day of [insert month] 20[year]Parties1[insert name of Outgoing Party] (Company Registration No....

Produced in partnership with Mills & Reeve 5th Mar

Precedents

Deed of novation of a consultant—employer to contractor

This Deed of novation is made on the [insert day] day of [insert month] 20[year]Parties1[insert name of Employer] (Company Registration No. [insert...

Produced in partnership with Mills & Reeve 5th Mar

Q&As

Is an email confirmation considered as adequate to satisfy the 'in writing' requirement for an assignment?

An assignment is an immediate transfer of an existing proprietary right, vested or contingent from one party to another. An assignment can either take...

15th Feb

Q&As

Can you assign only part of the benefit of a collateral warranty?

Various parties will usually have an interest in a construction project, eg tenants of individual units in a shopping centre development, or...

15th Feb

Q&As

Can part of an original agreement (eg a schedule to the original agreement) be novated to the incoming party so that the outgoing party is released and discharged from all liabilities related to that schedule of the original agreement?

This Q&A addresses a scenario where only the schedule is novated and the rest of the original agreement is not novated (and remains an agreement...

Produced in partnership with XXIV Old Buildings 15th Feb

Q&As

Where there is an existing agreement between party A and party B, what options are there to make the holding company of party A (party C) jointly liable with party A? Would novation into the joint names of party A and party C be appropriate?

For information relating to joint, several, and joint and several liability, see:•Practice Note: Joint, several, and joint and several liability•Q&A:...

15th Feb

Q&As

Where a contract subject to English law is proposed to be assigned by one of the parties to a third party, is the consent of the other contracting party required where such contracting party is based overseas?

Assignment of contractsAn ‘assignment’ is an immediate transfer of an existing proprietary right, vested or contingent from one party to...

15th Feb

Q&As

Can a party to a contract transfer its rights and/or obligations under it to a third party when the contract is silent on that point? Does a Contracts (Rights of Third Parties) Act 1999 clause affect that position?

Assignment for the transfer of rights under a contractAn assignment is ‘an immediate transfer of an existing proprietary right, vested or contingent...

15th Feb

Q&As

Can a power of attorney contained within a contract be transferred when novating that contract?

This Q&A refers to a business to business contract containing a general power of attorney granted under the Powers of Attorney Act 1971 (PAA 1971),...

15th Feb

Q&As

Without the inclusion of a no greater liability/equivalent rights of defence provision, does the warranty from the consultant to the contractor that is commonly included in a deed of novation enable the contractor to avoid any limitations on liability in the consultant’s appointment by claiming for breach of warranty under the deed of novation instead?

A warranty from the consultant to the contractor typically relates specifically to losses, etc that arise out of the consultant’s performance of its...

15th Feb

Assignment and novation

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Latest Construction News

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