ABSTRACT

A person who owns a contractual right, such as a debt, can assign that right to a third party, subject to certain conditions. As a consequence, the person to whom the right has been assigned may then sue the debtor. At common law, assignments were generally not recognised, unless there was a novation under which the debtor agreed to the assignment. In these circumstances, the right of the assignee is said to be based on an agreement with the debtor.56