Personal Obligations

Abstract This chapter examines the assignability of personal obligations in contracts, focusing on situations where an obligor’s performance is tied to a specific individual, making the obligation non-transferable. It discusses the rationale behind not allowing the assignment of personal obligations, particularly when performance depends on a specific party. The chapter outlines the legal test for determining personal obligations, which is based on the contract’s construction and the circumstances at the time the contract is formed. It also provides examples where courts apply this test, distinguishing between commercial contracts, personal services, and other agreements. Finally, the chapter concludes by highlighting situations where obligations are not personal, such as contracts for the sale of goods or building services, and situations where courts uphold the assignability of rights.