Business Law Quiz 7 Study Guide

Business Law Quiz 7 Study Guide - I Assignment of Rights a...

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I. Assignment of Rights a. An assignment of rights is a transfer of a contractual right to a third party. According to the stands in shoes rule, the assignee assumes responsibilities of assignor. Due diligence may be performed to efficiently carry out assignment. Although not required, a notice to the obligor should be done to confirm that obligor must now pay assignee rather than assignor in case of prepayment. As a general rule, consent or approval of obligor is not required, although several exceptions apply. A contract is nonassignable and/or may require consent if: the nature of the contract is personal, it is expressly made nonassignable through a nonassignment clause, the delegation will cause hardship, or the delegation is prohibited by law. II. Delegation of Duties a. A delegation of duties is a transfer of a contractual obligation to a third party. If the duty is delegable, anyone may perform the duty; however, if it is nondelegable, a transfer may not be done. A duty is nondelegable and/or may require consent if: the
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This note was uploaded on 09/18/2011 for the course BSL 212 taught by Professor Guzzi during the Spring '07 term at University of Miami.

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