Rights that can be assigned even if a contract

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Rights that can be assigned even if a contract prohibits  assignment include— • A right to receive money • Ownership rights in real estate • Rights in negotiable instruments • A right to receive damages for breach of a sales con- tract or for payment of an account owed WHAT ARE THE ASSIGNOR’S RIGHTS UNDER AN ASSIGNED CONTRACT? On a valid assignment, effective immediately, the as- signor (the original party) can no longer enforce the contract. SHOULD THE ASSIGNEE NOTIFY THE OBLIGOR OF THE ASSIGNMENT? Not legally necessary, but establishes— • Which of two or more assignees has the right to the  obligor’s performance • Only performance to the assignee can discharge the  obligor’s obligations ASSIGNOR ASSIGNEE OBLIGOR ASSIGNMENT OF RIGHTS ORIGINAL CONTRACT DUTIES OWED AFTER ASSIGNMENT 
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58           INSTRUCTOR’S MANUAL TO ACCOMPANY  BUSINESS LAW , ELEVENTH EDITION B. D ELEGATIONS A party can transfer duties under a contract through a delegation. No special form is required to create a valid delegation of duties. As long as the delegator expresses a present intention to make the delegation, it is effective. 1. Duties That Cannot Be Delegated Delegation is prohibited: (1) when performance depends on the personal skill or talents of the obligor, or when special trust has been placed in the obligor; (2) when performance by a third party will vary materially from that expected by the obligee; and (3) when the contract ex- pressly prohibits delegation. 2. Effect of a Delegation Normally, if the delegatee fails to perform, the delegator is still liable to the obligee.  Can the obligee hold the delegatee liable?  If the delegatee has promised performance that will directly benefit the obligee, there is an assumption of duty, a breach of which makes the delegatee li- able to the obligee.  (For example, a contractor who delegates the construction of a house is li - able if the delegatee fails to build the house—the obligee can sue either the contractor or the delegatee.  In effect, the obligee’s position is the same as that of a third party beneficiary to the contractor-delegatee contract.) C. A SSIGNMENT   OF  “A LL  R IGHTS When a contract provides for assignment of “all rights” (or states “I assign the contract” or uses similar general words), the contract is construed as implying an assignment of rights and a del- egation and an assumption of duties.
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