Assignment of Rights in Contract Law: Can Cassandra Collect the Missing Payments from Wally?

Assignment of Rights in Contract Law

Assignment of rights in contract law refers to the transfer of a party's rights and benefits under a contract to another party. When an assignment occurs, the assignee steps into the shoes of the assignor and gains the right to receive performance from the other party to the contract.

Communication of Assignment

One key requirement for a valid assignment of rights is the communication of the assignment to the obligor, the party who is obligated to perform under the contract. In this case, Garth assigned his rights to receive money from Wally to Cassandra without informing Wally of the assignment.

Legal Implications

As a result of non-disclosure of the assignment to Wally, he continued to make payments to Garth unaware of the assignment. When Garth left the country with the money, Cassandra sought to collect the missing payments from Wally. However, since Wally was not informed of the assignment, his payments to Garth were valid and legally binding.

Conclusion

Based on the principles of assignment of rights in contract law, Wally is not liable for the three missing payments to Cassandra. The lack of communication regarding the assignment means that Wally fulfilled his obligations by making payments to Garth. Cassandra does not have a legal basis to demand the payments from Wally.