9.4 Assignment of Contract

Meaning: the contract's transfer — the rights (the creditor's claim), the liabilities (the debtor's duty), or the whole contractual position to a third party. The distinctions: from novation (the new contract substituting a party — the consent of all three required); from sub-contracting (the original party remaining liable); from assignment by operation of law (below). Rules regarding assignment of rights: The assignability presumption — contractual rights transferable unless barred; The non-assignable class: the personal contracts (the personal skill-and-service promises); the contracts prohibiting assignment (the express anti-assignment terms); the public-policy bars (the personalty of public office; the unliquidated tort claims); The notice's machinery: the assignment's notice to the debtor — the perfecting-and-priority effects; the assignee's stepping-into-shoes: the same right, the same defences against him (the debtor's equities preserved). Rules regarding assignment of liabilities: the general rule — no unilateral transfer of debt: the creditor's consent required (the obligor cannot foist a new debtor — the person's essence in credit); the route is novation (the creditor's consent making the new contract); the guarantee structure as the third party's secondary-liability answer (Unit 12). Assignment by operation of law (no consent needed): death (the estate's succession — the executor's-and-heirs' position); insolvency (the estate's vesting in the administrator); marriage (the spousal-property unity's effects); legal process (the court's decree-and-execution); the companies' mergers-and-successions. The Nepali provisions: the…