When contract terms prohibiting the assignment of rights exist, most courts will:
A) award the obligor a right to damages for the breach of the terms forbidding the assignment.
B) interpret a general term prohibiting assignments as a mere promise not to assign.
C) strictly construe them.
D) All of these.

Question

Quizplus · Accepted Answer

Most courts will interpret a general term prohibiting assignments as a mere promise not to assign, strictly construe such terms, and may award the obligor a right to damages for the breach of the terms forbidding the assignment. This comprehensive approach reflects the courts' efforts to balance the contractual freedom to restrict assignments with the practical interests in allowing assignments under certain conditions.

When Contract Terms Prohibiting the Assignment of Rights Exist, Most