Prohibitions on Assignment

Abstract This chapter explores the legal ramifications of prohibitions on assignment in contractual agreements, focusing on clauses that restrict the transfer of rights and benefits. It identifies several types of prohibition, such as personal undertakings, provisions that invalidate assignments, and clauses granting the debtor the right to terminate the contract upon assignment. The effects of these restrictions are considered, detailing their impact on both the assignor and assignee. Additionally, the chapter addresses the distinction between legal and equitable choses in action and examines methods for circumventing assignment prohibitions, including the use of trusts or virtual assignments. Finally, it highlights key case law and principles, providing a detailed analysis of the complexities surrounding assignment clauses.