Assignment Of Chose In Action
It is a right of which a person does not have present enjoyment, but may recover it (if withheld) by action.
This may be assigned by writing, if signed by the assignor, absolute in terms and notice in writing being given to the debtor.
An absolute assignment must be in writing, must be made under the hand of the assignor and must provide for written notice of the assignment to be given the person against whom the assignor had the original claim.
If the benefits, future earnings, or other future interest assigned has not yet accrued, or the assignor has not yet performed his/her part of the contract, the assignment may still be valid.
Future earnings or crops may not be a mere possibility.
Normally, it is the most effective way for the official receiver, as liquidator or trustee, to deal with a right of action, but such action should not be undertaken ‘automatically’ or without legal advice.
In very brief summary, this Part says that the official receiver, as liquidator or trustee, may assign a right of action but, before doing so, should consider, amongst other things, the rights of those affected (see It can be seen that some of these principles require a careful balancing of competing interests, for which legal advice will be required, to avoid the risk of action being brought against the official receiver – see The official receiver should accept an offer for assignment if it is reasonable and does not prejudice him/her but not before seeking, or attempting again to seek, a settlement from the proposed defendant It is likely that the costs of the official receiver obtaining initial legal advice on a claim, and its possible assignment, will be in the order of £500 - £750 plus VAT.