INTRODUCTION

Summary of main points

1. (1) The holder of certain contractual rights (the promisee and assignor, B) can transfer the right to a third party (the assignee, C) without the promisor's (A's) consent. Thus, where A owes B a debt or other chose in action, the right-holder, B, can assign the benefit of this right to C.

2. (2) In the case of a statutory assignment, the assignment by B to C must be in writing, and B or C must notify A of the assignment.

3. (3) Such notice is also desirable in the case of equitable assignments.

4. (4) Certain rights are intrinsically incapable of being assigned because they are personal to the A/B relationship.

5. (5) A can preclude an assignment by inserting a prohibitory clause in his contract with B.

M. Smith, The Law of Assignment (Oxford, 2007)

EFFECTS OF ASSIGNMENT

Assignment has four effects (here, A is the promisor, B is the promisee, and C is the assignee):

1. (1) A, once notified, is obliged to pay C.

2. (2) To enforce the obligation created by the assignment in C's favour, C can sue A directly, without joining B as a party to the claim. This is true of statutory assignment (8.04) and of equitable assignment (8.05) of equitable choses in action. In the case of equitable assignment of a legal chose in action, such as a debt, the assignee must join the assignor as party to the claim (although there might be exceptions, where such joinder becomes unnecessary or it has been waived).

3. […]