If a court adjudicates the matter, the assignee winning at court may be vested with the authority to establish priority in performance of assigned rights.
Novations – If the assignee executes a novation, the novation establishes priority.
In general, unless the contract deems otherwise, obligees may assign their rights or delegate their duties under the contract to third parties.
Writing Requirement – Assignments and delegations of common law contracts do not have to be in writing.
Assignments of contracts for the sale of goods, however, must be in writing if the original contract was subject to the statute of frauds.
Non-Assignable/Delegable Contracts: Unless the agreement limits assignment of rights, most contracts are assignable.
If, however, a modification does not affect the assignee’s rights, it may be modified.
Continued Delegator Responsibilities – The party delegating the contract is still potentially liable under the contract if the delegatee fails to perform.
If, however, the delegatee and the obligee under the contract enter into a novation, the delegator is relieved of responsibility.: How do you feel about treating assignments of rights and delegation of duties under contracts differently?
Which of the assignment priority rules do you believe is most fair to the parties? Should a party be able to modify a contract after assigning her benefits?