Written by attorneys · grounded in primary & secondary sources — see below
A contractual stipulation expressed through broad nonspecific language such as an assignment of the contract or of all rights under the contract. Such language effects an assignment of rights and a delegation of unperformed duties unless the circumstances indicate otherwise. Acceptance by the assignee creates an enforceable promise to perform those duties.
Sources & Authorities· 4 primary sources
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Federal Rules
Uniform Acts
Restatements
How it applies
Common Examples
6
Broad Assignment of Supply Contract
Granite Holdings assigned its supply agreement with Grove Manufacturing by stating it transferred the contract in full. Grove later demanded performance from the assignee after Granite failed to deliver. The assignee's acceptance of the general assignment created an enforceable duty to perform the original obligations.
General Assignment of Consulting Agreement
Apex Services assigned its consulting contract with Metro Bank by language transferring all rights under the agreement. Metro later sought performance from the assignee when Apex ceased work. The assignee's acceptance created an enforceable duty to complete the remaining services.
Planned Parenthood of Southeastern Pennsylvania v. Casey505 U.S. 833, 112 S. Ct. 2791, 120 L. Ed. 2d 674 (1992)
Broad Transfer of Distribution Deal
Vertex Distributors assigned its distribution contract with Retail Partners using general assignment language. Retail Partners demanded that the assignee fulfill pending orders after Vertex defaulted. Acceptance by the assignee created an enforceable promise to perform the delegated duties.
Village of Euclid Ohio v. Ambler Realty Co.272 U.S. 365, 47 S.Ct. 114, 71 L.Ed 303 (1926)
General Assignment of Maintenance Contract
Summit Facilities assigned its maintenance agreement with Harbor Towers by stating it transferred the contract in full. Harbor Towers later required performance from the assignee after Summit stopped work. The assignee's acceptance created an enforceable duty to perform the remaining obligations.
Horizon Builders assigned its development contract with City Partners through general assignment language. City Partners demanded that the assignee complete unfinished phases after Horizon defaulted. Acceptance by the assignee created an enforceable promise to perform the delegated duties.
Patterson v. New York432 U.S. 197, 97 S.Ct. 2319, 53 L.Ed.2d 281
General Assignment of Supply Arrangement
Pinnacle Suppliers assigned its supply contract with Eastern Markets by language transferring all rights under the agreement. Eastern Markets later sought performance from the assignee when Pinnacle failed to deliver. The assignee's acceptance created an enforceable duty to perform the original obligations.
Brown v. United States12 U.S. 110 (1814)
Common questions
Frequently Asked
2
What legal effect follows when parties use general terms to assign a contract?+
An assignment phrased as a transfer of the contract or all rights under the contract assigns the assignor's rights and delegates unperformed duties. The assignee's acceptance creates a promise to perform those duties that the other original party may enforce.
Supporting sources
Does a general-term assignment automatically relieve the assignor of liability?+
No. The assignor remains liable to the other party unless the language or circumstances show a contrary intent. The delegation creates an additional obligor but does not discharge the original duty.
Supporting sources
272 U.S. 365, 47 S.Ct. 114, 71 L.Ed 303 (1926)Property
…v. Little Rock , 237 U. S. 171; Cusack Co. v. City of Chicago , 242 U. S. 526, 529-530. Here, however, the exclusion is in general terms of all industrial establishments, and it may thereby happen that not only offensive or dangerous industries will be excluded, but those which are neither offensive nor dangerous will share…
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