Transfer of Contractual Obligations Chapter 13

Contractual Rights Something You Can Receive Under a Contract Can Be Transferred to Others by Assignment Assignor Transfers Rights Assignee Receives Rights

Assignable Rights Those Which Are Not Materially Changed by Assignment Right to Collect a Debt

Non-assignable Rights Those Materially Changed by Assignment If Performance Becomes Substantially More Difficult A Right Created Under A Contract That Prohibits Transfer Claims for Damages for Personal Injuries

Non-assignable Rights Claims Against the United States Rights to Personal Services (Especially Those of a Skilled Nature or When Personal Trust and Confidence Are Involved) Assignments of Future Wages

Form Oral or Written Written Proof Is Better

Delegating Contractual Duties Transferring Routine Duties Remain Responsible for Performance Cannot Delegate Some Duties Requires Personal Skill Special Qualifications of Trust and Skill

Obligations of Obligors Owes a Duty Under A Contract Until Notified of Assignment Obligor May Pay Assignor After Notification Is Liable to Assignee

Assignee’s Rights Same Rights As Assignor No More or No Less Assignor Guarantees Right Is Legally Enforceable Assignor Does Not Guarantee Obligor Will Perform Assignee is Responsible for Notifying the Obligor of the Assignment

Performance of Duties Most contracts discharged by performance Failure to perform is breach Other party may regard obligation as discharged (Cancellation) If not performed within a reasonable time is a breach What is Reasonable Depends on Item Substantial performance-minor duty remains Does not discharge duties of other party

Anticipatory Breach Notification that you will not perform Can wait or treat as notice as evidence of breach and sue

How Else Can Contracts Be Discharged Agreement On Specified Date or Expiration of Specified Period of Time Upon Happening of an Event Upon Failure of Event At Free Will When Giving Notice Rescission-Return All Consideration Accord and Satisfaction Novation-Release and Accept Substitute

How Else Can Contracts Be Discharged Impossibility of Performance External Conditions Surprise War Unexpected Embargo-legal stoppage of commerce Shutdown of Major Supply source NOT Impossibility of Performance Inability to Pay or More Costly Strike Natural Disaster

How Else Can Contracts Be Discharged Destruction of Subject Matter Performance Declared Illegal Death or Disability-Personal Services

How Else Can Contracts Be Discharged By Operation of Law Bankruptcy Statute of Limitations Alteration Material change Made Intentionally Made by Party of Agreement Made Without Consent of Other Party

Effect of Tender of Performance Offer to Perform-tender Tender Act-if Rejected Is Discharged Tender Payment of Money (Legal Tender)- If Rejected Does Not Discharge Relieves Debtor of Court Costs and Future Interest