Equipment Lease Agreements typically contain language prohibiting the lessee from assigning the lease to a third party.For example, "You have no right to sell, transfer, assign, sublease, or encumber the equipment or this agreement" protects the Lessor’s collateral and credit underwriting guidelines in the event the lessee ever wants to transfer the lease to another party.Tags: Other Logical Structure EssayExample Of A Topic Outline For A Research PaperEssay About Personal AestheticsBen Van Roy ThesisWilliam Carlos Williams EssayThe Assassin Essay
An assignment cannot have any effect on the duties of the other party to the contract, nor can it reduce the possibility of the other party receiving full performance of the same quality.
Certain kinds of performance, therefore, cannot be assigned, because they create a unique relationship between the parties to the contract.
A contract may contain a non-assignment clause, which prohibits the assignment of specific rights and some various rights, or of the entire contract, to another.
However, such a clause does not necessarily destroy the power of either party to make an assignment.
In other cases, the contract may be a negotiable instrument in which the person receiving the instrument may become a holder in due course, which is similar to an assignee except that issues, such as lack of performance, by the assignor may not be a valid defense for the obligor.
As a response, the United States Federal Trade Commission promulgated Rule 433, formally known as the "Trade Regulation Rule Concerning Preservation of Consumers' Claims and Defenses", which "effectively abolished the [holder in due course] doctrine in consumer credit transactions".Instead, it merely gives the other party the ability to sue for breach of contract if such an assignment is made.However, an assignment of a contract containing such a clause will be ineffective if the assignee knows of the non-assignment clause, or if the non-assignment clause specifies that "all assignments are void".The rights may be vested or contingent, Mortgages and loans are relatively straightforward and amenable to assignment.An assignor may assign rights, such as a mortgage note issued by a third party borrower, and this would require the latter to make repayments to the assignee.is a legal term used in the context of the law of contract and of property.In both instances, assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee.However, in the case of assignment, the consent of the non-assigning party may be required by a contractual provision.The assignment does not necessarily have to be in writing; however, the assignment agreement must show an intent to transfer rights.Unless otherwise agreed all rights of either seller or buyer can be assigned except where the assignment would materially change the duty of the other party, or increase materially the burden or risk imposed on him by his contract, or impair materially his chance of obtaining return performance.A right to damages for breach of the whole contract or a right arising out of the assignor's due performance of his entire obligation can be assigned despite agreementotherwise [sic].