Assigning contracts—common scenarios and considerations
Assigning contracts—common scenarios and considerations

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Assigning contracts—common scenarios and considerations
  • Intra-group assignment
  • Assignment of debts
  • Assignment of Receivables
  • Assigning claims and causes of action
  • Assignment of warranties
  • Disclosure issues on assignment
  • Assignment—industry specific content

This Practice Note identifies a number of common assignment scenarios and key considerations when involved in such scenarios, such as intra-group assignment, assigning debts and warranties. For guidance on what constitutes a valid assignment of a contract, see Practice Note: What constitutes a valid assignment of a contract?

Intra-group assignment

Companies within a group will usually want the right to transfer rights between them without consent.

This may arise, in particular, where any assignee may subsequently cease to be a member of the assignor's group. It may be that, in such an instance, the assignee is required to assign the rights back to the assignor or another member of the assignor's group immediately upon ceasing to be a member of the relevant group.

For analysis of some of the issues that may arise as a result, see Practice Note: Common issues in an intra-group reorganisation.

Assignment of debts

A bank, or other institution, providing finance to a buyer on a share or assets acquisition may require the benefit of an agreement to be assigned to it as part of its security from the buyer. An assignee cannot recover from the debtor more than the assignor could have done had the assignment never taken place.

The issue of assigning debts can give rise to particular problems where the original contract between the assignor and the debtor contains specific provisions which may enable

Popular documents