Also known as: takes assignment · taking assignment · took assignment · taken assignment · assignment of rights · take an assignment
Written by attorneys — see sources below.
An acceptance by an assignee of a general assignment of contractual rights that also constitutes a promise to perform the assignor's duties under the contract. The promise is enforceable by either the assignor or the other party to the original contract.
Skyline Wind LLC assigns its right to future tax credit reimbursements under a power purchase agreement to Horizon Fund. Horizon accepts the assignment in general terms. GridPower must still submit the same tax paperwork and pay the same amounts, now to Horizon. Because Horizon accepted the assignment of rights, it also promised to perform any related duties, making the transfer effective against GridPower.
IndieWave Media purports to sell its right to three years of ad revenue splits to Apex Content Fund under a contract that requires written consent for any assignment. StreamHub refuses consent and continues paying IndieWave. Because the attempted transfer violates the consent clause, Apex's acceptance does not create an effective assignment of rights against StreamHub.
Yes. Under UCC § 2-210(5), an assignment of the contract or all rights under it in general terms is both an assignment of rights and a delegation of duties unless the language or circumstances indicate otherwise. The assignee's acceptance constitutes a promise to perform those duties, enforceable by the assignor or the other original party.
Yes. A valid contractual prohibition on assignment prevents the assignee from obtaining enforceable rights against the obligor, even if the assignee accepts the transfer. The obligor may continue performing to the assignor without liability to the assignee.