Template:Assignment and assumption capsule: Difference between revisions

Under an [[assignment and assumption]] the outgoing party assigns its rights against the remainer to the incoming party, while at the same time the incoming party assumes the outgoing party’s obligations to the remainer, and an infinitesimal moment later the outgoing party gracefully steps away into the night, propelled by the good wishes, respect, discharges and hold harmlesses of those remaining. Somehow, as a result, the {{isdaprov|Transaction}} is is not ''terminated'' and ''reconstituted'' as such, as would happen in a [[novation]], but granted perpetual existence through the whole surgical procedure: the Transaction is transferred as a live, palpitating organ from the breast of the retiring counterparty and into the ribcage of the incoming one.  

This is a lovely, imaginative solution to a technical tax risk. It is bold, elegant, endlessly fascinating and superficially attractive — rather like one of those [[Penrose triangle]]s. Like a [[Penrose triangle]], you can easily commit it to paper, and it pleases the easily gulled. Also like a Penrose triangle, it is conceptually impossible and cannot work.

Perhaps the “duck rabbit” is the better philosophical metaphor. You call it a “rabbit”, but it quacks like a duck, looks like a duck, and lays eggs.