CONTRACT LAW REVIEW NOTES
ASSIGNEMENT AND NOVATION
- Assignment and novation are two important concepts in contract law
that involve the transfer of rights and obligations under a contract.
- While both assignment and novation involve the transfer of
contractual rights, they differ in significant ways that have legal
implications for the parties involved.
**Assignment**
- Assignment is the transfer of a party's rights under a contract to a
third party, known as the assignee.
- The original party, known as the assignor, remains liable to perform
their obligations under the contract unless the parties agree otherwise.
- Assignments can be either legal or equitable, depending on whether
they meet certain requirements set out in the Law of Property Act
1925.
*Example*: Alice enters into a contract to sell her car to Bob. Alice
then assigns her right to receive payment for the car to Carol. Carol is
now entitled to receive payment from Bob under the contract, but Alice
remains liable to deliver the car to Bob.
**Novation**
ASSIGNEMENT AND NOVATION
- Assignment and novation are two important concepts in contract law
that involve the transfer of rights and obligations under a contract.
- While both assignment and novation involve the transfer of
contractual rights, they differ in significant ways that have legal
implications for the parties involved.
**Assignment**
- Assignment is the transfer of a party's rights under a contract to a
third party, known as the assignee.
- The original party, known as the assignor, remains liable to perform
their obligations under the contract unless the parties agree otherwise.
- Assignments can be either legal or equitable, depending on whether
they meet certain requirements set out in the Law of Property Act
1925.
*Example*: Alice enters into a contract to sell her car to Bob. Alice
then assigns her right to receive payment for the car to Carol. Carol is
now entitled to receive payment from Bob under the contract, but Alice
remains liable to deliver the car to Bob.
**Novation**
