Assignment In Contracts Leadership Essay On Invictus
Assignments are an important part of business financing, such as factoring.
A To effect an assignment, the assignor must make known his intention to transfer the rights to the third person.
Certain defenses, the so-called real defenses (infancy, duress, and fraud in the execution, among others), may always be asserted.
Under the UCC, any assignments of rights in excess of ,000 must be in writing, but otherwise, assignments can be oral and consideration is not required: the assignor could assign the right to the assignee for nothing (not likely in commercial transactions, of course). Franklin has the right to receive 0 a month from the sale of a house she formerly owned; she assigns the right to receive the money to her son Jason, as a gift.
The assignment is good, though such a gratuitous assignment is usually revocable, which is not the case where consideration has been paid for an assignment.
Federal Trade Commission regulations also affect the ability of many sellers to pass on rights to assignees free of defenses that buyers could raise against them.
Because of these various limitations on the holder in due course and on waivers, the “shoe rule” will not govern in consumer transactions and, if there are real defenses or the assignee does not act in good faith, in business transactions as well.