How To Assignment

Equipment Lease Agreements typically contain language prohibiting the lessee from assigning the lease to a third party.

As a response, the United States Federal Trade Commission promulgated Rule 433, formally known as the "Trade Regulation Rule Concerning Preservation of Consumers' Claims and Defenses", which "effectively abolished the [holder in due course] doctrine in consumer credit transactions".

An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee.

The right or benefit being assigned may be a gift (such as a waiver) or it may be paid for with a contractual consideration such as money.

A contract may contain a non-assignment clause, which prohibits the assignment of specific rights and some various rights, or of the entire contract, to another.

However, such a clause does not necessarily destroy the power of either party to make an assignment.


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