Q&As

Is it possible to assign the benefit of specific parts of a contract as opposed to the whole of it?

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Published on LexisPSL on 21/10/2020

The following Property Q&A provides comprehensive and up to date legal information covering:

  • Is it possible to assign the benefit of specific parts of a contract as opposed to the whole of it?

Is it possible to assign the benefit of specific parts of a contract as opposed to the whole of it?

The starting point is that the benefit of a contract can be assigned to a third party. To this there are a number of immediate exceptions:

  1. first if there is a contract for personal services, then it cannot be assigned. If A contracts to provide services to B, then the benefit of that contract cannot be assigned to C such that A becomes obliged to provide them to C: see, for example Nokes v Doncaster Amalgamated Collieries Ltd

  2. secondly, if there is a covenant in a contract preventing assignment, then any attempt to do so is ineffective: see Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd where the House of Lords held that such a provision is effective thereby drawing a distinction between purely contractual rights and those in land where the common law has always been slow to countenance inalienability

Choses in action can be assigned under the Law of Property Act 1925 (LPA 1925) provided

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