Assignment Clauses

A contractual clause prohibiting assignment of "the contract" is generally interpreted as prohibiting only the delegation of duties, not the assignment of rights. Thus, a clause restricting assignment ordinarily does not prevent the transfer of rights such as the right to payment. In such cases, the assignor retains the power to assign the rights, even if doing so breaches the contract, and the obligor may sue the assignor for that breach.

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Assignment of Rights