Assignment of Rights Forum
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HiiPower2015
- Posts: 49
- Joined: Thu Jan 24, 2013 5:24 pm
Assignment of Rights
I was wondering if someone could explain to me why this, A writes to B, Please pay to C the balance you owe me, is NOT an assignment of rights. I'm sorry if this is simple, but I think I am not getting this because I still don't full get where you draw the line about the means of assignment, and why writing a check is not an assignment of the right. Our professor kind of skimmed over it and didn't explain it fully, but said it would be on the exam. I understand that a check is not an assignment and why it's not as a practical reason, but I am not sure why based on the definition of an assignment or why the example I just stated is not an assignment.
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NotMyRealName09
- Posts: 1396
- Joined: Mon Nov 09, 2009 5:50 pm
Re: Assignment of Rights
The "right" being assigned is the creditor's right to recieve payment.
A telling B "pay C what you owe me" is not the same as A telling C "you can have my right to collect what B owes me."
If A only tells B "pay C," and B doesn't do it, C can't then sue B for failure to pay, because C doesn't have the RIGHT to recieve payment from B.
But if A assigns his right to collect the debt to C, and B then fails to pay C, C could sue B. That is because now C has been assigned the RIGHT to recieve payment from B.
That is why a check is not an assignment. It is not assigning rights - it is merely instructing a bank to pay someone. So if you are A, your bank is B, and someone you owe money to is C, a check is A telling B in writing to pay C, just like your example, which is not an assignment.
A telling B "pay C what you owe me" is not the same as A telling C "you can have my right to collect what B owes me."
If A only tells B "pay C," and B doesn't do it, C can't then sue B for failure to pay, because C doesn't have the RIGHT to recieve payment from B.
But if A assigns his right to collect the debt to C, and B then fails to pay C, C could sue B. That is because now C has been assigned the RIGHT to recieve payment from B.
That is why a check is not an assignment. It is not assigning rights - it is merely instructing a bank to pay someone. So if you are A, your bank is B, and someone you owe money to is C, a check is A telling B in writing to pay C, just like your example, which is not an assignment.
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HiiPower2015
- Posts: 49
- Joined: Thu Jan 24, 2013 5:24 pm
Re: Assignment of Rights
That makes perfect sense and clears it up! Thanks again
