Assignment
This chapter examines the law governing the transfer of contract rights that allows the new creditor to take the place of the old and enforce the right against the debtor in the same way. Legal systems differ as to when and how the debtor is to be apprised of the transfer of contract rights. One issue is whether informing the debtor not only makes sense from the assignee’s point of view, but is actually required. The chapter first provides a historical overview of assignment and considers its economic importance before discussing the requirements of an effective assignment, focusing on substantive validity, non-assignable rights, and how courts deal with disputes over priorities of claims. It also tackles the question of what obligations may arise between assignor and assignee when the agreement effects a change of creditor. Finally, it reviews the rules to prevent the debtor being prejudiced by a change of creditor.