- Principal’s liabilities — Termination of agency — Legal relations between principal and third party — Termination/unwinding of contract
Assignment is the transfer of the right to sue for a debt or other promised benefit. Assignment has three effects (here, A is the promisor, B is the promisee, and C is the assignee): (i) A, once notified, is obliged to pay C; (ii) C can sue A directly, without joining B as a party to the claim; (iii) A’s obligation to B is discharged if, pursuant to a valid assignment by B to C, A pays C in full. By contrast, if, after B’s assignment of the right to C, A instead pays B, this payment is ineffective to discharge A’s newly transferred obligation towards C. Agency is the process by which an agreement can be formed by X acting on behalf of Y, the latter being the principal. The rules on this topic are complex. This is a succinct account of these rules.
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