Assignment: Difference between revisions
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The act of unilaterally passing your | {{g}}The act of unilaterally passing your [[right]]s, but not your [[obligation]]s, to some other fellow. | ||
'''Rights''': As a matter of {{t|contract}} law, one can assign one’s rights without one’s [[counterparty]]’s consent (broadly speaking, why should she care?), unless your [[contract]] states that you cannot, in which case you cannot. | '''Rights''': As a matter of {{t|contract}} law, one ''can'' assign one’s rights without one’s [[counterparty]]’s consent (broadly speaking, why should she care?), unless your [[contract]] states that you cannot, in which case you cannot. | ||
'''Obligations''': | '''Obligations''': One ''cannot'' unilaterally [[assign]] one’s obligations to anyone without one’s [[counterparty]]’s consent. This stands to reason, since another chap might not be as skillful, creditworthy or personally attractive as you. Therefore your [[counterparty]] must consent, and if {{sex|she}} does, it is called a “[[novation]]”. | ||
'''Does a right of assignment compromise a netting contract?''' If I have a contract predicated on my being able to [[net]] or [[set off]] transaction amounts I owe you against amounts you owe me, couldn’t your right to assign your rights against me to a third person prejudice the rights under my contract? | '''Does a right of assignment compromise a [[Close-out netting|netting]] contract?''' If I have a contract predicated on my being able to [[net]] or [[set off]] transaction amounts I owe you against amounts you owe me, couldn’t your right to assign your rights against me to a third person prejudice the rights under my contract? In short, no. | ||
'''What about [[subrogation]] rights under a [[guarantee]]?''' | '''What about [[subrogation]] rights under a [[guarantee]]?''' | ||
{{subrogation setoff}} | {{subrogation setoff}} | ||
{{ | {{sa}} | ||
*[[ | *[[Assignment by way of security]] | ||
*[[Novation]] | *[[Novation]] | ||
*[[Guarantee]] | *[[Guarantee]] | ||
*[[Subrogation]] | *[[Subrogation]] |