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Assignment of Contract Rights

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You are a designer of children's clothing and decide to open a children's clothing store. You find a nice place in a local mall and agree to sign a one-year lease agreement that runs from September 1 to August 31. The lease agreement specifies that the lease cannot be assigned without the mall's consent. In late May, you decide that this space is not attracting enough customers, so you decide to assign the balance of your lease to Priscilla, who owns a candle shop. The mall objects to the assignment and denies Priscilla access to the space. You are certain that Priscilla is financially sound and should be allowed the full rights and privileges of an assignee. Discuss fully whether or not you or the mall is correct.

1. Discuss fully the elements of assignment.
2. Examine whether or not rights can be assigned if prohibited in a lease contract.
3. Analyze the distinctions between commercial assignments and residential assignments.

(150 words and cited work)

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Law and Profession (150 words and cited work)

An assignment is the transfer of rights from one part, the assignor, to another party, the assignee. The assignment gives additional rights and liabilities as part of the act. The common law prefers the freedom to allow people to use assignment as long as the assignment is permitted based on ...

Solution Summary

This solution provides a review of a scenario for the assignment of contract rights from one party to another party.

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After being injured in a motorcycle accident, Gary retained the law firm of High & Low to represent him in suing the other driver. Later, in an unrelated incident, Gary dislocated his shoulder and required surgery. Having no money to pay the surgeon, Gary signed a latter addressed to High & Low requesting that any money from the motorcycle accident settlement be assigned to the surgeon for treatment of Gary's shoulder. Gary personally delivered the letter to the receptionist at High & Low. Eventually, High & Low were successful in negotiating a settlement in Gary's favor. But, when the firm received the settlement check, Gary instructed his attorney to pay the money directly to Gary. The attorney did as Gary asked. As a result the surgeon was never paid.

If the surgeon sues High & Low, can the surgeon recover if the law firm argues in defense that Gary's right to any settlement was not assignable.

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