The contract includes an assignment clause, so when Ken goes out of business, he assigns the contract to his sister-in-law Karrie, who also owns a lawn mowing service.
Rights and obligations of specific people can’t be assigned because special skills and abilities can’t be transferred. For example, Billy Joel can’t transfer (assign) a contract to perform at Madison Square Garden to anyone else.
The assignor’s intention must be that the assignment is effective without need of any further action or any further manifestation of intention to make the assignment.
In other words, the assignor must intend and understand himself to be making the assignment then and there; he is not promising to make the assignment sometime in the future.
Assignments won’t stand up in court if the assignment significantly changes the terms of the contract.
For example, if Karrie’s business is tree trimming, not lawn mowing, the contract can’t be assigned to her.
The Company will have the right at all times to assign any of its rights or obligations …
to a direct or indirect wholly owned Subsidiary of the Company, provided that, in the event of any such assignment, the Company will remain liable for all such obligations.
After all, anybody could waltz up to the obligor and say, “I’m the assignee of your contract with the bank.
From now on, pay me the 0 a month, not the bank.” The obligor is entitled to verification of the assignment. He gains all the rights against the obligor that the assignor had, but no more.