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## 14.2: Assignment of Contract Rights

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## Learning Objectives

• Understand what an assignment is and how it is made.
• Recognize the effect of the assignment.
• Know when assignments are not allowed.
• Understand the concept of assignor’s warranties.

## The Concept of a Contract Assignment

Contracts create rights and duties. By an assignment , an obligee (one who has the right to receive a contract benefit) transfers a right to receive a contract benefit owed by the obligor (the one who has a duty to perform) to a third person ( assignee ); the obligee then becomes an assignor (one who makes an assignment).

The Restatement (Second) of Contracts defines an assignment of a right as “a manifestation of the assignor’s intention to transfer it by virtue of which the assignor’s right to performance by the obligor is extinguished in whole or in part and the assignee acquires the right to such performance.”Restatement (Second) of Contracts, Section 317(1). The one who makes the assignment is both an obligee and a transferor. The assignee acquires the right to receive the contractual obligations of the promisor, who is referred to as the obligor (see Figure 14.1 "Assignment of Rights" ). The assignor may assign any right unless (1) doing so would materially change the obligation of the obligor, materially burden him, increase his risk, or otherwise diminish the value to him of the original contract; (2) statute or public policy forbids the assignment; or (3) the contract itself precludes assignment. The common law of contracts and Articles 2 and 9 of the Uniform Commercial Code (UCC) govern assignments. Assignments are an important part of business financing, such as factoring. A factor is one who purchases the right to receive income from another.

Figure 14.1 Assignment of Rights

## Method of Assignment

Manifesting assent.

To effect an assignment, the assignor must make known his intention to transfer the rights to the third person. The assignor’s intention must be that the assignment is effective without need of any further action or any further manifestation of intention to make the assignment. In other words, the assignor must intend and understand himself to be making the assignment then and there; he is not promising to make the assignment sometime in the future.

Under the UCC, any assignments of rights in excess of $5,000 must be in writing, but otherwise, assignments can be oral and consideration is not required: the assignor could assign the right to the assignee for nothing (not likely in commercial transactions, of course). Mrs. Franklin has the right to receive$750 a month from the sale of a house she formerly owned; she assigns the right to receive the money to her son Jason, as a gift. The assignment is good, though such a gratuitous assignment is usually revocable, which is not the case where consideration has been paid for an assignment.

## Acceptance and Revocation

For the assignment to become effective, the assignee must manifest his acceptance under most circumstances. This is done automatically when, as is usually the case, the assignee has given consideration for the assignment (i.e., there is a contract between the assignor and the assignee in which the assignment is the assignor’s consideration), and then the assignment is not revocable without the assignee’s consent. Problems of acceptance normally arise only when the assignor intends the assignment as a gift. Then, for the assignment to be irrevocable, either the assignee must manifest his acceptance or the assignor must notify the assignee in writing of the assignment.

Notice to the obligor is not required, but an obligor who renders performance to the assignor without notice of the assignment (that performance of the contract is to be rendered now to the assignee) is discharged. Obviously, the assignor cannot then keep the consideration he has received; he owes it to the assignee. But if notice is given to the obligor and she performs to the assignor anyway, the assignee can recover from either the obligor or the assignee, so the obligor could have to perform twice, as in Exercise 2 at the chapter’s end, Aldana v. Colonial Palms Plaza . Of course, an obligor who receives notice of the assignment from the assignee will want to be sure the assignment has really occurred. After all, anybody could waltz up to the obligor and say, “I’m the assignee of your contract with the bank. From now on, pay me the $500 a month, not the bank.” The obligor is entitled to verification of the assignment. ## Effect of Assignment General rule. An assignment of rights effectively makes the assignee stand in the shoes of the assignor. He gains all the rights against the obligor that the assignor had, but no more. An obligor who could avoid the assignor’s attempt to enforce the rights could avoid a similar attempt by the assignee. Likewise, under UCC Section 9-318(1), the assignee of an account is subject to all terms of the contract between the debtor and the creditor-assignor. Suppose Dealer sells a car to Buyer on a contract where Buyer is to pay$300 per month and the car is warranted for 50,000 miles. If the car goes on the fritz before then and Dealer won’t fix it, Buyer could fix it for, say, $250 and deduct that$250 from the amount owed Dealer on the next installment (called a setoff). Now, if Dealer assigns the contract to Assignee, Assignee stands in Dealer’s shoes, and Buyer could likewise deduct the $250 from payment to Assignee. The “shoe rule” does not apply to two types of assignments. First, it is inapplicable to the sale of a negotiable instrument to a holder in due course (covered in detail Chapter 23 "Negotiation of Commercial Paper" ). Second, the rule may be waived: under the UCC and at common law, the obligor may agree in the original contract not to raise defenses against the assignee that could have been raised against the assignor.Uniform Commercial Code, Section 9-206. While a waiver of defenses makes the assignment more marketable from the assignee’s point of view, it is a situation fraught with peril to an obligor, who may sign a contract without understanding the full import of the waiver. Under the waiver rule, for example, a farmer who buys a tractor on credit and discovers later that it does not work would still be required to pay a credit company that purchased the contract; his defense that the merchandise was shoddy would be unavailing (he would, as used to be said, be “having to pay on a dead horse”). For that reason, there are various rules that limit both the holder in due course and the waiver rule. Certain defenses, the so-called real defenses (infancy, duress, and fraud in the execution, among others), may always be asserted. Also, the waiver clause in the contract must have been presented in good faith, and if the assignee has actual notice of a defense that the buyer or lessee could raise, then the waiver is ineffective. Moreover, in consumer transactions, the UCC’s rule is subject to state laws that protect consumers (people buying things used primarily for personal, family, or household purposes), and many states, by statute or court decision, have made waivers of defenses ineffective in such consumer transactions . Federal Trade Commission regulations also affect the ability of many sellers to pass on rights to assignees free of defenses that buyers could raise against them. Because of these various limitations on the holder in due course and on waivers, the “shoe rule” will not govern in consumer transactions and, if there are real defenses or the assignee does not act in good faith, in business transactions as well. ## When Assignments Are Not Allowed The general rule—as previously noted—is that most contract rights are assignable. But there are exceptions. Five of them are noted here. ## Material Change in Duties of the Obligor When an assignment has the effect of materially changing the duties that the obligor must perform, it is ineffective. Changing the party to whom the obligor must make a payment is not a material change of duty that will defeat an assignment, since that, of course, is the purpose behind most assignments. Nor will a minor change in the duties the obligor must perform defeat the assignment. Several residents in the town of Centerville sign up on an annual basis with the Centerville Times to receive their morning paper. A customer who is moving out of town may assign his right to receive the paper to someone else within the delivery route. As long as the assignee pays for the paper, the assignment is effective; the only relationship the obligor has to the assignee is a routine delivery in exchange for payment. Obligors can consent in the original contract, however, to a subsequent assignment of duties. Here is a clause from the World Team Tennis League contract: “It is mutually agreed that the Club shall have the right to sell, assign, trade and transfer this contract to another Club in the League, and the Player agrees to accept and be bound by such sale, exchange, assignment or transfer and to faithfully perform and carry out his or her obligations under this contract as if it had been entered into by the Player and such other Club.” Consent is not necessary when the contract does not involve a personal relationship. ## Assignment of Personal Rights When it matters to the obligor who receives the benefit of his duty to perform under the contract, then the receipt of the benefit is a personal right that cannot be assigned. For example, a student seeking to earn pocket money during the school year signs up to do research work for a professor she admires and with whom she is friendly. The professor assigns the contract to one of his colleagues with whom the student does not get along. The assignment is ineffective because it matters to the student (the obligor) who the person of the assignee is. An insurance company provides auto insurance covering Mohammed Kareem, a sixty-five-year-old man who drives very carefully. Kareem cannot assign the contract to his seventeen-year-old grandson because it matters to the insurance company who the person of its insured is. Tenants usually cannot assign (sublet) their tenancies without the landlord’s permission because it matters to the landlord who the person of their tenant is. Section 14.4.1 "Nonassignable Rights" , Nassau Hotel Co. v. Barnett & Barse Corp. , is an example of the nonassignability of a personal right. ## Assignment Forbidden by Statute or Public Policy Various federal and state laws prohibit or regulate some contract assignment. The assignment of future wages is regulated by state and federal law to protect people from improvidently denying themselves future income because of immediate present financial difficulties. And even in the absence of statute, public policy might prohibit some assignments. ## Contracts That Prohibit Assignment Assignability of contract rights is useful, and prohibitions against it are not generally favored. Many contracts contain general language that prohibits assignment of rights or of “the contract.” Both the Restatement and UCC Section 2-210(3) declare that in the absence of any contrary circumstances, a provision in the agreement that prohibits assigning “the contract” bars “only the delegation to the assignee of the assignor’s performance.”Restatement (Second) of Contracts, Section 322. In other words, unless the contract specifically prohibits assignment of any of its terms, a party is free to assign anything except his or her own duties. Even if a contractual provision explicitly prohibits it, a right to damages for breach of the whole contract is assignable under UCC Section 2-210(2) in contracts for goods. Likewise, UCC Section 9-318(4) invalidates any contract provision that prohibits assigning sums already due or to become due. Indeed, in some states, at common law, a clause specifically prohibiting assignment will fail. For example, the buyer and the seller agree to the sale of land and to a provision barring assignment of the rights under the contract. The buyer pays the full price, but the seller refuses to convey. The buyer then assigns to her friend the right to obtain title to the land from the seller. The latter’s objection that the contract precludes such an assignment will fall on deaf ears in some states; the assignment is effective, and the friend may sue for the title. ## Future Contracts The law distinguishes between assigning future rights under an existing contract and assigning rights that will arise from a future contract. Rights contingent on a future event can be assigned in exactly the same manner as existing rights, as long as the contingent rights are already incorporated in a contract. Ben has a long-standing deal with his neighbor, Mrs. Robinson, to keep the latter’s walk clear of snow at twenty dollars a snowfall. Ben is saving his money for a new printer, but when he is eighty dollars shy of the purchase price, he becomes impatient and cajoles a friend into loaning him the balance. In return, Ben assigns his friend the earnings from the next four snowfalls. The assignment is effective. However, a right that will arise from a future contract cannot be the subject of a present assignment. ## Partial Assignments An assignor may assign part of a contractual right, but only if the obligor can perform that part of his contractual obligation separately from the remainder of his obligation. Assignment of part of a payment due is always enforceable. However, if the obligor objects, neither the assignor nor the assignee may sue him unless both are party to the suit. Mrs. Robinson owes Ben one hundred dollars. Ben assigns fifty dollars of that sum to his friend. Mrs. Robinson is perplexed by this assignment and refuses to pay until the situation is explained to her satisfaction. The friend brings suit against Mrs. Robinson. The court cannot hear the case unless Ben is also a party to the suit. This ensures all parties to the dispute are present at once and avoids multiple lawsuits. ## Successive Assignments It may happen that an assignor assigns the same interest twice (see Figure 14.2 "Successive Assignments" ). With certain exceptions, the first assignee takes precedence over any subsequent assignee. One obvious exception is when the first assignment is ineffective or revocable. A subsequent assignment has the effect of revoking a prior assignment that is ineffective or revocable. Another exception: if in good faith the subsequent assignee gives consideration for the assignment and has no knowledge of the prior assignment, he takes precedence whenever he obtains payment from, performance from, or a judgment against the obligor, or whenever he receives some tangible evidence from the assignor that the right has been assigned (e.g., a bank deposit book or an insurance policy). Some states follow the different English rule: the first assignee to give notice to the obligor has priority, regardless of the order in which the assignments were made. Furthermore, if the assignment falls within the filing requirements of UCC Article 9 (see Chapter 28 "Secured Transactions and Suretyship" ), the first assignee to file will prevail. Figure 14.2 Successive Assignments ## Assignor’s Warranties An assignor has legal responsibilities in making assignments. He cannot blithely assign the same interests pell-mell and escape liability. Unless the contract explicitly states to the contrary, a person who assigns a right for value makes certain assignor’s warranties to the assignee: that he will not upset the assignment, that he has the right to make it, and that there are no defenses that will defeat it. However, the assignor does not guarantee payment; assignment does not by itself amount to a warranty that the obligor is solvent or will perform as agreed in the original contract. Mrs. Robinson owes Ben fifty dollars. Ben assigns this sum to his friend. Before the friend collects, Ben releases Mrs. Robinson from her obligation. The friend may sue Ben for the fifty dollars. Or again, if Ben represents to his friend that Mrs. Robinson owes him (Ben) fifty dollars and assigns his friend that amount, but in fact Mrs. Robinson does not owe Ben that much, then Ben has breached his assignor’s warranty. The assignor’s warranties may be express or implied. ## Key Takeaway Generally, it is OK for an obligee to assign the right to receive contractual performance from the obligor to a third party. The effect of the assignment is to make the assignee stand in the shoes of the assignor, taking all the latter’s rights and all the defenses against nonperformance that the obligor might raise against the assignor. But the obligor may agree in advance to waive defenses against the assignee, unless such waiver is prohibited by law. There are some exceptions to the rule that contract rights are assignable. Some, such as personal rights, are not circumstances where the obligor’s duties would materially change, cases where assignability is forbidden by statute or public policy, or, with some limits, cases where the contract itself prohibits assignment. Partial assignments and successive assignments can happen, and rules govern the resolution of problems arising from them. When the assignor makes the assignment, that person makes certain warranties, express or implied, to the assignee, basically to the effect that the assignment is good and the assignor knows of no reason why the assignee will not get performance from the obligor. • If Able makes a valid assignment to Baker of his contract to receive monthly rental payments from Tenant, how is Baker’s right different from what Able’s was? • Able made a valid assignment to Baker of his contract to receive monthly purchase payments from Carr, who bought an automobile from Able. The car had a 180-day warranty, but the car malfunctioned within that time. Able had quit the auto business entirely. May Carr withhold payments from Baker to offset the cost of needed repairs? • Assume in the case in Exercise 2 that Baker knew Able was selling defective cars just before his (Able’s) withdrawal from the auto business. How, if at all, does that change Baker’s rights? • Why are leases generally not assignable? Why are insurance contracts not assignable? • assignments basic law ## Assignments: The Basic Law The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States. As with many terms commonly used, people are familiar with the term but often are not aware or fully aware of what the terms entail. The concept of assignment of rights and obligations is one of those simple concepts with wide ranging ramifications in the contractual and business context and the law imposes severe restrictions on the validity and effect of assignment in many instances. Clear contractual provisions concerning assignments and rights should be in every document and structure created and this article will outline why such drafting is essential for the creation of appropriate and effective contracts and structures. The reader should first read the article on Limited Liability Entities in the United States and Contracts since the information in those articles will be assumed in this article. Basic Definitions and Concepts: An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” The legal nature of the assignment and the contractual terms of the agreement between the parties determines some additional rights and liabilities that accompany the assignment. The assignment of rights under a contract usually completely transfers the rights to the assignee to receive the benefits accruing under the contract. Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court , 35 Cal. 2d 109, 113-114 (Cal. 1950). An assignment will generally be permitted under the law unless there is an express prohibition against assignment in the underlying contract or lease. Where assignments are permitted, the assignor need not consult the other party to the contract but may merely assign the rights at that time. However, an assignment cannot have any adverse effect on the duties of the other party to the contract, nor can it diminish the chance of the other party receiving complete performance. The assignor normally remains liable unless there is an agreement to the contrary by the other party to the contract. The effect of a valid assignment is to remove privity between the assignor and the obligor and create privity between the obligor and the assignee. Privity is usually defined as a direct and immediate contractual relationship. See Merchants case above. Further, for the assignment to be effective in most jurisdictions, it must occur in the present. One does not normally assign a future right; the assignment vests immediate rights and obligations. No specific language is required to create an assignment so long as the assignor makes clear his/her intent to assign identified contractual rights to the assignee. Since expensive litigation can erupt from ambiguous or vague language, obtaining the correct verbiage is vital. An agreement must manifest the intent to transfer rights and can either be oral or in writing and the rights assigned must be certain. Note that an assignment of an interest is the transfer of some identifiable property, claim, or right from the assignor to the assignee. The assignment operates to transfer to the assignee all of the rights, title, or interest of the assignor in the thing assigned. A transfer of all rights, title, and interests conveys everything that the assignor owned in the thing assigned and the assignee stands in the shoes of the assignor. Knott v. McDonald’s Corp ., 985 F. Supp. 1222 (N.D. Cal. 1997) The parties must intend to effectuate an assignment at the time of the transfer, although no particular language or procedure is necessary. As long ago as the case of National Reserve Co. v. Metropolitan Trust Co ., 17 Cal. 2d 827 (Cal. 1941), the court held that in determining what rights or interests pass under an assignment, the intention of the parties as manifested in the instrument is controlling. The intent of the parties to an assignment is a question of fact to be derived not only from the instrument executed by the parties but also from the surrounding circumstances. When there is no writing to evidence the intention to transfer some identifiable property, claim, or right, it is necessary to scrutinize the surrounding circumstances and parties’ acts to ascertain their intentions. Strosberg v. Brauvin Realty Servs., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998) The general rule applicable to assignments of choses in action is that an assignment, unless there is a contract to the contrary, carries with it all securities held by the assignor as collateral to the claim and all rights incidental thereto and vests in the assignee the equitable title to such collateral securities and incidental rights. An unqualified assignment of a contract or chose in action, however, with no indication of the intent of the parties, vests in the assignee the assigned contract or chose and all rights and remedies incidental thereto. More examples: In Strosberg v. Brauvin Realty Servs ., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998), the court held that the assignee of a party to a subordination agreement is entitled to the benefits and is subject to the burdens of the agreement. In Florida E. C. R. Co. v. Eno , 99 Fla. 887 (Fla. 1930), the court held that the mere assignment of all sums due in and of itself creates no different or other liability of the owner to the assignee than that which existed from the owner to the assignor. And note that even though an assignment vests in the assignee all rights, remedies, and contingent benefits which are incidental to the thing assigned, those which are personal to the assignor and for his sole benefit are not assigned. Rasp v. Hidden Valley Lake, Inc ., 519 N.E.2d 153, 158 (Ind. Ct. App. 1988). Thus, if the underlying agreement provides that a service can only be provided to X, X cannot assign that right to Y. Novation Compared to Assignment: Although the difference between a novation and an assignment may appear narrow, it is an essential one. “Novation is a act whereby one party transfers all its obligations and benefits under a contract to a third party.” In a novation, a third party successfully substitutes the original party as a party to the contract. “When a contract is novated, the other contracting party must be left in the same position he was in prior to the novation being made.” A sublease is the transfer when a tenant retains some right of reentry onto the leased premises. However, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, then the transfer is an assignment. The assignor is normally also removed from liability to the landlord only if the landlord consents or allowed that right in the lease. In a sublease, the original tenant is not released from the obligations of the original lease. Equitable Assignments: An equitable assignment is one in which one has a future interest and is not valid at law but valid in a court of equity. In National Bank of Republic v. United Sec. Life Ins. & Trust Co. , 17 App. D.C. 112 (D.C. Cir. 1900), the court held that to constitute an equitable assignment of a chose in action, the following has to occur generally: anything said written or done, in pursuance of an agreement and for valuable consideration, or in consideration of an antecedent debt, to place a chose in action or fund out of the control of the owner, and appropriate it to or in favor of another person, amounts to an equitable assignment. Thus, an agreement, between a debtor and a creditor, that the debt shall be paid out of a specific fund going to the debtor may operate as an equitable assignment. In Egyptian Navigation Co. v. Baker Invs. Corp. , 2008 U.S. Dist. LEXIS 30804 (S.D.N.Y. Apr. 14, 2008), the court stated that an equitable assignment occurs under English law when an assignor, with an intent to transfer his/her right to a chose in action, informs the assignee about the right so transferred. An executory agreement or a declaration of trust are also equitable assignments if unenforceable as assignments by a court of law but enforceable by a court of equity exercising sound discretion according to the circumstances of the case. Since California combines courts of equity and courts of law, the same court would hear arguments as to whether an equitable assignment had occurred. Quite often, such relief is granted to avoid fraud or unjust enrichment. Note that obtaining an assignment through fraudulent means invalidates the assignment. Fraud destroys the validity of everything into which it enters. It vitiates the most solemn contracts, documents, and even judgments. Walker v. Rich , 79 Cal. App. 139 (Cal. App. 1926). If an assignment is made with the fraudulent intent to delay, hinder, and defraud creditors, then it is void as fraudulent in fact. See our article on Transfers to Defraud Creditors . But note that the motives that prompted an assignor to make the transfer will be considered as immaterial and will constitute no defense to an action by the assignee, if an assignment is considered as valid in all other respects. Enforceability of Assignments: Whether a right under a contract is capable of being transferred is determined by the law of the place where the contract was entered into. The validity and effect of an assignment is determined by the law of the place of assignment. The validity of an assignment of a contractual right is governed by the law of the state with the most significant relationship to the assignment and the parties. In some jurisdictions, the traditional conflict of laws rules governing assignments has been rejected and the law of the place having the most significant contacts with the assignment applies. In Downs v. American Mut. Liability Ins. Co ., 14 N.Y.2d 266 (N.Y. 1964), a wife and her husband separated and the wife obtained a judgment of separation from the husband in New York. The judgment required the husband to pay a certain yearly sum to the wife. The husband assigned 50 percent of his future salary, wages, and earnings to the wife. The agreement authorized the employer to make such payments to the wife. After the husband moved from New York, the wife learned that he was employed by an employer in Massachusetts. She sent the proper notice and demanded payment under the agreement. The employer refused and the wife brought an action for enforcement. The court observed that Massachusetts did not prohibit assignment of the husband’s wages. Moreover, Massachusetts law was not controlling because New York had the most significant relationship with the assignment. Therefore, the court ruled in favor of the wife. Therefore, the validity of an assignment is determined by looking to the law of the forum with the most significant relationship to the assignment itself. To determine the applicable law of assignments, the court must look to the law of the state which is most significantly related to the principal issue before it. Assignment of Contractual Rights: Generally, the law allows the assignment of a contractual right unless the substitution of rights would materially change the duty of the obligor, materially increase the burden or risk imposed on the obligor by the contract, materially impair the chance of obtaining return performance, or materially reduce the value of the performance to the obligor. Restat 2d of Contracts, § 317(2)(a). This presumes that the underlying agreement is silent on the right to assign. If the contract specifically precludes assignment, the contractual right is not assignable. Whether a contract is assignable is a matter of contractual intent and one must look to the language used by the parties to discern that intent. In the absence of an express provision to the contrary, the rights and duties under a bilateral executory contract that does not involve personal skill, trust, or confidence may be assigned without the consent of the other party. But note that an assignment is invalid if it would materially alter the other party’s duties and responsibilities. Once an assignment is effective, the assignee stands in the shoes of the assignor and assumes all of assignor’s rights. Hence, after a valid assignment, the assignor’s right to performance is extinguished, transferred to assignee, and the assignee possesses the same rights, benefits, and remedies assignor once possessed. Robert Lamb Hart Planners & Architects v. Evergreen, Ltd. , 787 F. Supp. 753 (S.D. Ohio 1992). On the other hand, an assignee’s right against the obligor is subject to “all of the limitations of the assignor’s right, all defenses thereto, and all set-offs and counterclaims which would have been available against the assignor had there been no assignment, provided that these defenses and set-offs are based on facts existing at the time of the assignment.” See Robert Lamb , case, above. The power of the contract to restrict assignment is broad. Usually, contractual provisions that restrict assignment of the contract without the consent of the obligor are valid and enforceable, even when there is statutory authorization for the assignment. The restriction of the power to assign is often ineffective unless the restriction is expressly and precisely stated. Anti-assignment clauses are effective only if they contain clear, unambiguous language of prohibition. Anti-assignment clauses protect only the obligor and do not affect the transaction between the assignee and assignor. Usually, a prohibition against the assignment of a contract does not prevent an assignment of the right to receive payments due, unless circumstances indicate the contrary. Moreover, the contracting parties cannot, by a mere non-assignment provision, prevent the effectual alienation of the right to money which becomes due under the contract. A contract provision prohibiting or restricting an assignment may be waived, or a party may so act as to be estopped from objecting to the assignment, such as by effectively ratifying the assignment. The power to void an assignment made in violation of an anti-assignment clause may be waived either before or after the assignment. See our article on Contracts. Noncompete Clauses and Assignments: Of critical import to most buyers of businesses is the ability to ensure that key employees of the business being purchased cannot start a competing company. Some states strictly limit such clauses, some do allow them. California does restrict noncompete clauses, only allowing them under certain circumstances. A common question in those states that do allow them is whether such rights can be assigned to a new party, such as the buyer of the buyer. A covenant not to compete, also called a non-competitive clause, is a formal agreement prohibiting one party from performing similar work or business within a designated area for a specified amount of time. This type of clause is generally included in contracts between employer and employee and contracts between buyer and seller of a business. Many workers sign a covenant not to compete as part of the paperwork required for employment. It may be a separate document similar to a non-disclosure agreement, or buried within a number of other clauses in a contract. A covenant not to compete is generally legal and enforceable, although there are some exceptions and restrictions. Whenever a company recruits skilled employees, it invests a significant amount of time and training. For example, it often takes years before a research chemist or a design engineer develops a workable knowledge of a company’s product line, including trade secrets and highly sensitive information. Once an employee gains this knowledge and experience, however, all sorts of things can happen. The employee could work for the company until retirement, accept a better offer from a competing company or start up his or her own business. A covenant not to compete may cover a number of potential issues between employers and former employees. Many companies spend years developing a local base of customers or clients. It is important that this customer base not fall into the hands of local competitors. When an employee signs a covenant not to compete, he or she usually agrees not to use insider knowledge of the company’s customer base to disadvantage the company. The covenant not to compete often defines a broad geographical area considered off-limits to former employees, possibly tens or hundreds of miles. Another area of concern covered by a covenant not to compete is a potential ‘brain drain’. Some high-level former employees may seek to recruit others from the same company to create new competition. Retention of employees, especially those with unique skills or proprietary knowledge, is vital for most companies, so a covenant not to compete may spell out definite restrictions on the hiring or recruiting of employees. A covenant not to compete may also define a specific amount of time before a former employee can seek employment in a similar field. Many companies offer a substantial severance package to make sure former employees are financially solvent until the terms of the covenant not to compete have been met. Because the use of a covenant not to compete can be controversial, a handful of states, including California, have largely banned this type of contractual language. The legal enforcement of these agreements falls on individual states, and many have sided with the employee during arbitration or litigation. A covenant not to compete must be reasonable and specific, with defined time periods and coverage areas. If the agreement gives the company too much power over former employees or is ambiguous, state courts may declare it to be overbroad and therefore unenforceable. In such case, the employee would be free to pursue any employment opportunity, including working for a direct competitor or starting up a new company of his or her own. It has been held that an employee’s covenant not to compete is assignable where one business is transferred to another, that a merger does not constitute an assignment of a covenant not to compete, and that a covenant not to compete is enforceable by a successor to the employer where the assignment does not create an added burden of employment or other disadvantage to the employee. However, in some states such as Hawaii, it has also been held that a covenant not to compete is not assignable and under various statutes for various reasons that such covenants are not enforceable against an employee by a successor to the employer. Hawaii v. Gannett Pac. Corp. , 99 F. Supp. 2d 1241 (D. Haw. 1999) It is vital to obtain the relevant law of the applicable state before drafting or attempting to enforce assignment rights in this particular area. Conclusion: In the current business world of fast changing structures, agreements, employees and projects, the ability to assign rights and obligations is essential to allow flexibility and adjustment to new situations. Conversely, the ability to hold a contracting party into the deal may be essential for the future of a party. Thus, the law of assignments and the restriction on same is a critical aspect of every agreement and every structure. This basic provision is often glanced at by the contracting parties, or scribbled into the deal at the last minute but can easily become the most vital part of the transaction. As an example, one client of ours came into the office outraged that his co venturer on a sizable exporting agreement, who had excellent connections in Brazil, had elected to pursue another venture instead and assigned the agreement to a party unknown to our client and without the business contacts our client considered vital. When we examined the handwritten agreement our client had drafted in a restaurant in Sao Paolo, we discovered there was no restriction on assignment whatsoever…our client had not even considered that right when drafting the agreement after a full day of work. One choses who one does business with carefully…to ensure that one’s choice remains the party on the other side of the contract, one must master the ability to negotiate proper assignment provisions. Founded in 1939, our law firm combines the ability to represent clients in domestic or international matters with the personal interaction with clients that is traditional to a long established law firm. Read more about our firm © 2024, Stimmel, Stimmel & Roeser, All rights reserved | Terms of Use | Site by Bay Design ## Assignment of Manufacturer's Warranty (Sales Transaction) | Practical Law ## Assignment of Manufacturer's Warranty (Sales Transaction) Practical law standard document w-019-1755 (approx. 9 pages). ## Collateral warranties – an update • Using your device Last year, there were two key decisions relating to collateral warranties in Abbey Healthcare (Mill Hill) Ltd-v- Simply Construct (UK) LLP [2022] EWCA Civ 823 and Orchard Plaza Management Co Ltd -v- Balfour Beatty Regional Construction Ltd [2022] EWHC 1490 (TCC). In December 2022 it was confirmed that Simply has been granted permission to appeal to the Supreme Court in the case of Abbey Healthcare. A collateral warranty is a promise by the contractor or a professional consultant (the warrantor) to carry out its obligations under a building contract or professional appointment for the benefit of a third party who has an interest in the construction project such as a purchaser, funder or tenant. These two cases cover (i) if a collateral warranty is a ‘construction contract’ under the Housing Grants, Construction and Regeneration Act 1996 (‘the Construction Act’) and (ii) the effect of assignment on the rights under a collateral warranty. ## Is a collateral warranty a construction contract? The question of whether a collateral warranty is a construction contract was previously considered in the case of Parkwood Leisure Ltd -v- Laing O’Rourke Wales and West Ltd [2013] EWHC 2665. This question is important because if a collateral warranty is found to be a construction contract, then the beneficiary has certain rights under the Construction Act including the right to adjudicate. The statutory process of adjudication is often a quicker and cheaper way to resolve disputes than litigation or arbitration. The decision in Parkwood was clear that not every collateral warranty would be a construction contract as it depended on the precise wording used; if a contractor warranted to positively carry out the construction operations, the collateral warranty would likely be a construction contract but if they only warranted to a previous state of affairs then it pointed towards the collateral warranty not being a construction contract. The case of Abbey Healthcare is an example of a beneficiary under a collateral warranty seeking to enforce its rights through adjudication. Abbey was the ultimate tenant and manager of a care home designed and built by Simply. There were some cladding and fire safety defects identified in the building which required remediation. The owner and Abbey commenced separate and successful adjudication proceedings against Simply for the cost of the remediation works. Simply did not pay and argued that the collateral warranty was not a construction contract and so the adjudicator had no jurisdiction. The judge at the enforcement hearing agreed that the collateral warranty was not a construction contract and seemed to rely on the fact that the warranty was given four years after practical completion so Simply were warranting to a past state of affairs and not providing a contract for the carrying out of construction operations. The decision of the judge was appealed and the Court of Appeal took a different view. Upholding Parkwood, the majority decided that whether a collateral warranty was a construction contract depended on its wording: whilst the wording in the Abbey collateral warranty differed from the Parkwood collateral warranty it still related to both past and future performance so was a construction contract. The Court of Appeal found that if a collateral warranty was akin to a performance guarantee, then the collateral warranty was not a construction contract. The position established by the Court of Appeal could be overturned by the Supreme Court. It remains to be seen if the Supreme Court will row back from the position in Abbey to the earlier more limited position in Parkwood. Until the Supreme Court reaches its decision, any beneficiary under a collateral warranty looking to commence dispute resolution procedure ought to be cautious about pursuing adjudication proceedings. ## Assignment of a Collateral Warranty The facts of Orchard Plaza are that a warranty originally given in favour of the funder was then assigned twice, as permitted by the terms of the collateral warranty, to the developer and then finally to the building owner. Warranties usually provide a right to assign, albeit usually such assignments are limited in number or limited to a category of beneficiary. It is common to also see what is called a ‘no loss’ clause. This clause is intended to prevent the warrantor arguing that an assignee cannot recover an amount under the collateral warranty because it is an assignee and the assignor has not suffered or incurred any loss or would not have suffered that type of loss. In Orchard Plaza, the building owner sought to recover the cost of remedial works from the contractor under the collateral warranty. The contractor argued that the loss was too remote (ie not reasonably foreseeable as at the date of the underlying contract) as the losses that could have been foreseen by the contractor were those suffered by the funder who originally had the benefit of the collateral warranty (ie the diminution in value of its security). The court held that the losses suffered by the building owner were not too remote. It clarified the test for remoteness was whether the kind of loss now claimed was, at the time the contract was made, reasonably contemplated as a serious possibility . The judge decided that it was in the contractor’s reasonable contemplation as a serious possibility that an assignee would incur repair costs because of a breach by the contractor. ## Key takeaways The Court of Appeal decision in Abbey was significant because many forms of collateral warranties in use were thought likely to be a construction contract. However, the appeal to the Supreme Court means that the right to bring adjudication proceedings in relation to a collateral warranty is still unclear. Until such position is clarified, there is significant risk that using adjudication to resolve a dispute under a collateral warranty could be subject to a successful jurisdictional challenge. Beneficiaries who have been assigned the benefit of a collateral warranty will take comfort in the upholding of the no loss provision in Orchard Plaza which is wording commonly used in well-drafted collateral warranties. However, warrantors and their insurers will be more anxious to limit the scope of any assignment provisions and also perhaps, to limit their liability. Watch this space! We will provide a further update once the Supreme Court has made a decision on Abbey. • Collateral Warranties ## Construction Related insights, building safety duties: are you protected. 16 April 2024 As the regulations and industry changes under the Building Safety Act 2022 continue to come into effect, there are many issues which the construction industry needs to consider and familiarise... ## Responsible Actors Scheme ('RAS') 03 November 2023 The Responsible Actors Scheme which was launched on 24 July 2023. This currently affects Developers whose principal business is residential property development and who meet the certain conditions... ## How many adjudications? 14 July 2023 In this article Michael Woolley looks at the rule against adjudicating the same issue twice in the light of the latest Court of Appeal decision in Sudlows -v- Global Switch Estates... ## JCT 2024: Overview of the changes 11 July 2023 The JCT is due to publish new editions of its contracts in 2024. The core themes and main changes that we currently expect to see in JCT 2024 are summarised in this article. ## Part 8 as a means of resisting enforcement of adjudication decisions 02 May 2023 The Technology & Construction Court ('TCC') has provided some further guidance as to when the Part 8 procedure can be used as a mechanism to avoid the enforcement of an adjudication decision. In the ## Building Safety Act 2022: Safety Case Report 20 April 2023 The Principal Accountable Person (where there is there is more than one Accountable Person) must also prepare a Safety Case Report for the Higher-Risk Building evidencing... ## How we can advise you Advising on all aspects of construction and engineering law, our construction team brings commercial perspective and experience to both contentious and non-contentious matters. ## Assignment in Insurance Policy | Meaning | Explanation | Types Table of Contents • 1 What is Assignment in an Insurance Policy? • 2 Who can make an assignment? • 3 What happens to the ownership of the policy upon Assignment? • 4 Can assignment be changed or cancelled? • 5 What happens if the assignment dies? • 6 What is the procedure to make an assignment? • 7 Is it necessary to Inform the insurer about assignment? • 8 Can a policy be assigned to a minor person? • 9 Who pays premium when a policy is assigned? • 10.1 1. Conditional Assignment • 10.2 2. Absolute Assignment ## What is Assignment in an Insurance Policy? Assignment means a complete transfer of the ownership of the policy to some other person. Usually assignment is done for the purpose of raising a loan from a bank or a financial institution . Assignment is governed by Section 38 of the Insurance Act 1938 in India. Assignment can also be done in favour of a close relative when the policyholder wishes to give a gift to that relative. Such an assignment is done for “natural love and affection”. An example, a policyholder may assign his policy to his sister who is handicapped. ## Who can make an assignment? A policyholder who has policy on his own life can assign the policy to another person. However, a person to whom a policy has been assigned can reassign the policy to the policyholder or assign it to any other person. A nominee cannot make an assignment of the policy. Similarly, an assignee cannot make a nomination on the policy which is assigned to him. ## What happens to the ownership of the policy upon Assignment? When a policyholder assign a policy, he loses all control on the policy. It is no longer his property. It is now the assignee’s property whether the policyholder is alive or dead, the assignee alone will get the policy money from the insurance company. If the assignee dies, then his (assignee’s) legal heirs will be entitled to the policy money. ## Can assignment be changed or cancelled? An assignment cannot be changed or cancelled. The assignee can of course, reassign the policy to the policyholder who assigned it to him. He can also assign the policy to any other person because it is now his property. We can think of a bank reassigning the policy to the policyholder when their loan is repaid. ## What happens if the assignment dies? If the assignee dies, the assignment does not get cancelled. The legal heirs of the assignee become entitled to the policy money. Assignment is a legal transfer of all the interests the policyholder has in the policy to the assignee. ## What is the procedure to make an assignment? Assignment can be made only after issue of the policy bond. The policyholder can either write out the wording on the policy bond (endorsement) or write it on a separate paper and get it stamped. (Stamp value is the same, as the stamp required for the policy — Twenty paise per one thousand sum assured). When assignment is made by an endorsement on the policy bond, there is no need for stamp because the policy is already stamped. ## Is it necessary to Inform the insurer about assignment? Yes, it is necessary to give information about assignment to the insurance company. The insurer will register the assignment in its records and from then on recognize the assignee as the owner of the policy. If someone has made more than one assignment, then the date of the notice will decide which assignment has priority. In the case of reassignment also, notice is necessary. ## Can a policy be assigned to a minor person? Assignment can be made in favour of a minor person. But it would be advisable to appoint a guardian to receive the policy money if it becomes due during the minority of the assignee. ## Who pays premium when a policy is assigned? When a policy is assigned normally, the assignee should pay the premium, because the policy is now his property. In practice, however, premium is paid by the assignor (policyholder) himself. When a bank gives a loan and takes the assignment of a policy a security, it will ask the assignor himself to pay the premium and keep it in force. In the case of an assignment as a gift, the assignor would like to pay the premium because he has gifted the policy. ## Types of assignment Assignment may take two forms: • Conditional Assignment. • Absolute Assignment. ## 1. Conditional Assignment It would be useful where the policyholder desires the benefit of the policy to go to a near relative in the event of his earlier death. It is usually effected for consideration of natural love and affection. It generally provides for the right to revert the policyholder in the event of the assignee predeceasing the policyholder or the policyholder surviving to the date of maturity. ## 2. Absolute Assignment This assignment is generally made for valuable consideration. It has the effect of passing the title in the policy absolutely to the assignee and the policyholder in no way retains any interest in the policy. The absolute assignee can deal with the policy in any manner he likes and may assign or transfer his interest to another person. ## Related Posts • Privacy Policy ## Assignment under Insurance Policies By J Mandakini, NUALS Editor’s Note: This paper attempts to explore the concept of assignment under Indian law especially Contract Act, Insurance Act and Transfer of Property Act. It seeks to appreciate why the assignment is made use of for securities of a facility sanctioned by ICICI Bank. Also, it explains how ICICI Bank faces certain problems in executing the same. ## INTRODUCTION For any facility sanctioned by a lender, collateral is always deposited to secure the same. Such mere deposition will not suffice, the borrower has to explicitly permit the lender to recover from the borrower, such securities in case of his default. This is done by the concept of assignment, dealt with adequately in Indian law. Assignment of obligations is always a tricky matter and needs to be dealt with carefully. The Bank should not fall short of any legally permitted lengths to ensure the same. This is why ambiguity in its security documents have to be rectified. This paper attempts to explore the concept of assignment in contract law. It seeks to appreciate why the assignment is made use of for securities of a facility sanctioned by ICICI Bank. The next section will deal with how ICICI Bank faces certain problems in executing the same. The following sections will talk about possible risks involved, as well as defenses and solutions to the same. ## WHAT IS ASSIGNMENT? Assignment refers to the transfer of certain or all (depending on the agreement) rights to another party. The party which transfers its rights is called an assignor, and the party to whom such rights are transferred is called an assignee. Assignment only takes place after the original contract has been made. As a general rule, assignment of rights and benefits under a contract may be done freely, but the assignment of liabilities and obligations may not be done without the consent of the original contracting party. The liability on a contract cannot be transferred so as to discharge the person or estate of the original contractor unless the creditor agrees to accept the liability of another person instead of the first. [i] ## Illustration P agrees to sell his car to Q for Rs. 100. P assigns the right to receive the Rs. 100 to S. This may be done without the consent of Q. This is because Q is receiving his car, and it does not particularly matter to him, to whom the Rs. 100 is being handed as long as he is being absolved of his liability under the contract. However, notice may still be required to be given. Without such notice, Q would pay P, in spite of the fact that such right has been assigned to S. S would be a sufferer in such case. In this case, that condition is being fulfilled since P has assigned his right to S. However, P may not assign S to be the seller. P cannot just transfer his duties under the contract to another. This is because Q has no guarantee as to the condition of S’s car. P entered into the contract with Q on the basis of the merits of P’s car, or any other personal qualifications of P. Such assignment may be done with the consent of all three parties – P, Q, S, and by doing this, P is absolved of his liabilities under the contract. ## 1.1. Effect of Assignment Immediately on the execution of an assignment of an insurance policy, the assignor forgoes all his rights, title and interest in the policy to the assignee. The premium or loan interest notices etc. in such cases will be sent to the assignee. [ii] However, the existence of obligations must not be assumed, when it comes to the assignment. It must be accompanied by evidence of the same. The party asserting such a personal obligation must prove the existence of an express assumption by clear and unequivocal proof. [iii] Assignment of a contract to a third party destroys the privity of contract between the initial contracting parties. New privity is created between the assignee and the original contracting party. In the illustration mentioned above, the original contracting parties were P and Q. After the assignment, the new contracting parties are Q and S. ## 1.2. Revocation of Assignment Assignment, once validly executed, can neither be revoked nor canceled at the option of the assignor. To do so, the insurance policy will have to be reassigned to the original assignor (the insured). ## 1.3. Exceptions to Assignment There are some instances where the contract cannot be assigned to another. • Express provisions in the contract as to its non-assignability – Some contracts may include a specific clause prohibiting assignment. If that is so, then such a contract cannot be assigned. Assignability is the rule and the contrary is an exception. [iv] ## Pensions, PFs, military benefits etc. Illustration 1.4. enforcing a contract of assignment. From the day on which notice is given to the insurer, the assignee becomes the beneficiary of the policy even though the assignment is not registered immediately. It does not wait until the giving of notice of the transfer to the insurer. [vi] However, no claims may lie against the insurer until and unless notice of such assignment is delivered to the insurer. If notice of assignment is not provided to the obligor, he is discharged if he pays to the assignor. Assignee would have to recover from the assignor. However, if the obligor pays the assignor in spite of the notice provided to him, he would still be liable to the assignee. The following two illustrations make the point amply clear: ## Illustrations 1. Seller A assigns its right to payment from buyer X to bank B. Neither A nor B gives notice to X. When payment is due, X pays A. This payment is fully valid and X is discharged. It will be up to B to recover it from A 2. Seller A assigns to bank B its right to payment from buyer X. B immediately gives notice of the assignment to X. When payment is due, X still pays A. X is not discharged and B is entitled to oblige X to pay a second time. An assignee doesn’t stand in better shoes than those of his assignor. Thus, if there is any breach of contract by the obligor to the assignee, the latter can recover from the former only the same amount as restricted by counter claims, set offs or liens of the assignor to the obligor. The acknowledgment of notice of assignment is conclusive proof of, and evidence enough to entertain a suit against an assignor and the insurer respectively who haven’t honoured the contract of assignment. ## 1.5. Assignment under various laws in India There is no separate law in India which deals with the concept of assignment. Instead, several laws have codified it under different laws. Some of them have been discussed as follows: ## 1.5.1. Under the Indian Contract Act There is no express provision for the assignment of contracts under the Indian Contract Act. Section 37 of the Act provides for the duty of parties of a contract to honour such contract (unless the need for the same has been done away with). This is how the Act attempts to introduce the concept of assignment into Indian commercial law. It lays down a general responsibility on the “representatives” of any parties to a contract that may have expired before the completion of the contract. (Illustrations to Section 37 in the Act). An exception to this may be found from the contract, e.g. contracts of a personal nature. Representatives of a deceased party to a contract cannot claim privity to that contract while refusing to honour such contract. Under this Section, “representatives” would also include within its ambit, transferees and assignees. [vii] Section 41 of the Indian Contract Act applies to cases where a contract is performed by a third party and not the original parties to the contract. It applies to cases of assignment. [viii] A promisee accepting performance of the promise from a third person cannot afterwards enforce it against the promisor. [ix] He cannot attain double satisfaction of its claim, i.e., from the promisor as well as the third party which performed the contract. An essential condition for the invocation of this Section is that there must be actual performance of the contract and not of a substituted promise. ## 1.5.2. Under the Insurance Act The creation of assignment of life insurance policies is provided for, under Section 38 of the Insurance Act, 1938. • When the insurer receives the endorsement or notice, the fact of assignment shall be recorded with all details (date of receipt of notice – also used to prioritise simultaneous claims, the name of assignee etc). Upon request, and for a fee of an amount not exceeding Re. 1, the insurer shall grant a written acknowledgment of the receipt of such assignment, thereby conclusively proving the fact of his receipt of the notice or endorsement. Now, the insurer shall recognize only the assignee as the legally valid party entitled to the insurance policy. ## 1.5.3. Under the Transfer of Property Act Indian law as to assignment of life policies before the Insurance Act, 1938 was governed by Sections 130, 131, 132 and 135 of the Transfer of Property Act 1882 under Chapter VIII of the Act – Of Transfers of Actionable Claims. Section 130 of the Transfer of Property Act states that nothing contained in that Section is to affect Section 38 of the Insurance Act. ## I) Section 130 of the Transfer of Property Act An actionable claim may be transferred only by fulfilling the following steps: • Signed by a transferor (or his authorized agent) The transfer will be complete and effectual as soon as such an instrument is executed. No particular form or language has been prescribed for the transfer. It does not depend on giving notice to the debtor. The proviso in the section protects a debtor (or other person), who, without knowledge of the transfer pays his creditor instead of the assignee. As long as such payment was without knowledge of the transfer, such payment will be a valid discharge against the transferee. When the transfer of any actionable claim is validly complete, all rights and remedies of transferor would vest now in the transferee. Existence of an instrument in writing is a sine qua non of a valid transfer of an actionable claim. [x] ## II) Section 131 of the Transfer Of Property Act This Section requires the notice of transfer of actionable claim, as sent to the debtor, to be signed by the transferor (or by his authorized agent), and if he refuses to sign it, a signature by the transferee (or by his authorized agent). Such notice must state both the name and address of the transferee. This Section is intended to protect the transferee, to receive from the debtor. The transfer does not bind a debtor unless the transferor (or transferee, if transferor refuses) sends him an express notice, in accordance with the provisions of this Section. ## III) Section 132 of the Transfer Of Property Act This Section addresses the issue as to who should undertake the obligations under the transfer, i.e., who will discharge the liabilities of the transferor when the transfer has been made complete – would it be the transferor himself or the transferee, to whom the rest of the surviving contract, so to speak, has been transferred. This Section stipulates, that the transferee himself would fulfill such obligations. However, where an actionable claim is transferred with the stipulation in the contract that transferor himself should discharge the liability, then such a provision in the contract will supersede Ss 130 and 132 of this Act. Where the insured hypothecates his life insurance policies and stipulates that he himself would pay the premiums, the transferee is not bound to pay the premiums. [xi] ## FACILITIES SECURED BY INSURANCE POLICIES – HOW ASSIGNMENT COMES INTO THE PICTURE Many banks require the borrower to take out or deposit an insurance policy as security when they request a personal loan or a business loan from that institution. The policy is used as a way of securing the loan, ensuring that the bank will have the facility repaid in the event of either the borrower’s death or his deviations from the terms of the facility agreement. Along with the deposit of the insurance policy, the policyholder will also have to assign the benefits of the policy to the financial institution from which he proposes to avail a facility. The mere deposit, without writing, or passing of any document of title to such a claim, does not create any equitable charge. [xii] ## ETHICS OF ASSIGNING LIFE INSURANCE POLICY TO LENDERS The purpose of taking out a life insurance policy on oneself, is that in the event of an untimely death, near and dear ones of the deceased are not left high and dry, and that they would have something to fall back on during such traumatic times. Depositing and assigning the rights under such policy document to another, would mean that there is a high chance that benefits of life insurance would vest in such other, in the event of unfortunate death and the family members are prioritized only second. These are not desirable circumstances where the family would be forced to cope with the death of their loved one coupled with the financial crisis. Thus, there is a need to examine the ethics of: • The bank accepting such assignment The customer should be cautious before assigning his rights under life insurance policies. By “cautious”, it is only meant that he and his dependents and/or legal heirs should be aware of the repercussions of the act of assigning his life insurance policy. It is conceded that no law prohibits the assignment of life insurance policies. In fact, Section 38 of the Insurance Act, 1938 , provides for such assignments. Judicial cases have held life insurance policies as property more than a social welfare measure. [xiii] Further, the bank has no personal relationship with any customer and thus has no moral obligation to not accept such assignments of life insurance. However, the writer is of the opinion that, in dealing with the assignment of life insurance policies, utmost care and caution must be taken by the insured when assigning his life insurance policy to anyone else. ## CURRENT STAND OF ICICI REGARDING FACILITIES SECURED BY INSURANCE POLICY, WITH SPECIFIC REFERENCE TO ASSIGNMENT OF OBLIGATIONS This Section seeks to address and highlight the manner in which ICICI Bank drafts its security documents with regard to the assignment of obligations. The texts placed in quotes in the subsequent paragraphs are verbatim extracts from the security document as mentioned. ## Composite Document for Corporate and Realty Funding “ 8 . CHARGING CLAUSE The Mortgagor doth hereby: iii) Assign and transfer unto the Mortgagee all the Bank Accounts and all rights, title, interest, benefits, claims and demands whatsoever of the Mortgagor in, to, under and in respect of the Bank Accounts and all monies including all cash flows and receivables and all proceeds arising from Projects and Other Projects_______________, insurance proceeds, which have been deposited / credited / lying in the Bank Accounts, all records, investments, assets, instruments and securities which represent all amounts in the Bank Accounts, both present and future (the “Account Assets”, which expression shall, as the context may permit or require, mean any or each of such Account Assets) to have and hold the same unto and to the use of the Mortgagee absolutely and subject to the powers and provisions herein contained and subject also to the proviso for redemption hereinafter mentioned; (v) Assign and transfer unto the Mortgagee all right, title, interest, benefit, claims and demands whatsoever of the Mortgagors, in, to, under and/or in respect of the Project Documents (including insurance policies) including, without limitation, the right to compel performance thereunder, and to substitute, or to be substituted for, the Mortgagor thereunder, and to commence and conduct either in the name of the Mortgagor or in their own names or otherwise any proceedings against any persons in respect of any breach of, the Project Documents and, including without limitation, rights and benefits to all amounts owing to, or received by, the Mortgagor and all claims thereunder and all other claims of the Mortgagor under or in any proceedings against all or any such persons and together with the right to further assign any of the Project Documents, both present and future, to have and to hold all and singular the aforesaid assets, rights, properties, etc. unto and to the use of the Mortgagee absolutely and subject to the powers and provisions contained herein and subject also to the proviso for redemption hereinafter mentioned.” ## ICICI Bank’s Standard Terms and Conditions Governing Consumer Durable Loans “ insurance. The Borrower further agrees that upon any monies becoming due under the policy, the same shall be paid by the Insurance Company to ICICI Bank without any reference / notice to the Borrower, but not exceeding the principal amount outstanding under the Insurance Policy. The Borrower specifically acknowledges that in all cases of claim, the Insurance Company will be solely liable for settlement of the claim, and he/she will not hold ICICI Bank responsible in any manner whether for compensation, recovery of compensation, processing of claims or for any reason whatsoever. Reference has been made only to assignment of assets, rights, benefits, interests, properties etc. No specific reference has been made to the assignment of obligations of the assignor under such insurance contract. ## THE ISSUE FACED BY ICICI BANK Where ICICI Bank accepts insurance policy documents of customers as security for a loan, in the light of the fact that the documents are silent about the question of assignment of obligations, are they assigned to ICICI Bank? Where there is hypothecation of a life insurance policy, with a stipulation that the mortgagor (assignor) should pay the premiums, and that the mortgagee (assignee) is not bound to pay the same, Sections 130 and 132 do not apply to such cases. [xiv] With rectification of this issue, ICICI Bank can concretize its hold over the securities with no reservations about its legality. ## RISKS INVOLVED This section of the paper attempts to explore the many risks that ICICI Bank is exposed to, or other factors which worsen the situation, due to the omission of a clause detailing the assignment of obligations by ICICI Bank. ## Practices of Other Companies The practices of other companies could be a risk factor for ICICI Bank in the light of the fact that some of them expressly exclude assignment of obligations in their security documents. There are some companies whose notice of assignment forms contain an exclusive clause dealing with the assignment of obligations. It states that while rights and benefits accruing out of the insurance policy are to be assigned to the bank, obligations which arise out of such policy documents will not be liable to be performed by the bank. Thus, they explicitly provide for the only assignment of rights and benefits and never the assignment of obligations. ## Possible Obligation to Insurance Companies By not clearing up this issue, ICICI Bank could be held to be obligated to the insurance company from whom the assignor took the policy, for example, with respect to insurance premiums which were required to be paid by the assignor. This is not a desirable scenario for ICICI Bank. In case of default by the assignor in the terms of the contract, the right of ICICI Bank over the security deposited (insurance policy in question) could be fraught in the legal dispute. ## Possible litigation Numerous suits may be instituted against ICICI Bank alleging a violation of the Indian Contract Act. Some examples include allegations of concealment of fact, fraud etc. These could be enough to render the existing contract of assignment voidable or even void. ## Contra Proferentem This doctrine applies in a situation when a provision in the contract can be interpreted in more than one way, thereby creating ambiguities. It attempts to provide a solution to interpreting vague terms by laying down, that a party which drafts and imposes an ambiguous term should not benefit from that ambiguity. Where there is any doubt or ambiguity in the words of an exclusion clause, the words are construed more forcibly against the party putting forth the document, and in favour of the other party. [xv] The doctrine of contra proferentem attempts to protect the layman from the legally knowledgeable companies which draft standard forms of contracts, in which the former stands on a much weaker footing with regard to bargaining power with the latter. This doctrine has been used in interpreting insurance contracts in India. [xvi] If litigation ensues as a result of this uncertainty, there are high chances that the Courts will tend to favour the assignor and not the drafter of the documents. ## POSSIBLE DEFENSES AGAINST DISPUTES FOR THE SECURITY DOCUMENTS AS THEY ARE NOW This section of the paper attempts to give defences which the Bank may raise in case of any disputes arising out of silence on the matter of assignability of obligations. Interpretation of the Security Documents UNIDROIT principles expressly provide a method for interpretation of contracts. [xvii] The method consists of utilizing the following factors: This defence relates to the concept of estoppel embodied in Section 115 of the Indian Evidence Act, 1872. According to the Section, when one person has, by his declaration, act or omission, intentionally caused or permitted another person to believe a thing to be true and to act upon such belief, neither he nor his representative shall be allowed, in any suit or proceeding between himself and such person or his representatives, to deny the truth of that thing. If a man either by words or by conduct has intimated that he consents to an act which has been done and that he will not offer any opposition to it, and he thereby induces others to do that which they otherwise might have abstained from, he cannot question legality of the act he had sanctioned to the prejudice of those who have so given faith to his words or to the fair inference to be drawn from his conduct. [xviii] Subsequent conduct may be relevant to show that the contract exists, or to show variation in the terms of the contract, or waiver, or estoppel. [xix] Where the meaning of the instrument is ambiguous, a statement subsequently interpreting such instrument is admissible. [xx] In the present case, where the borrower has never raised any claims with regard to non assignability of obligations on him, and has consented to the present conditions and relations with ICICI Bank, he cannot he cannot be allowed to raise any claims with respect to the same. Internationally, the doctrine of post contractual conduct is invoked for such disputes. It refers to the acts of parties to a contract after the commencement of the contract. It stipulates that where a party has behaved in a particular manner, so as to induce the other party to discharge its obligations, even if there has been a variation from the terms of the contract, the first party cannot cite such variation as a reason for its breach of the contract. Where the parties to a contract are both under a common mistake as to the meaning or effect of it, and therefore embark on a course of dealing on the footing of that mistake, thereby replacing the original terms of the contract by a conventional basis on which they both conduct their affairs, then the original contract is replaced by the conventional basis. The parties are bound by the conventional basis. Either party can sue or be sued upon it just as if it had been expressly agreed between them. [xxi] The importance of consensus ad idem has been concretized by various case laws in India. Further, if the stipulations and terms are uncertain and the parties are not ad idem there can be no specific performance, for there was no contract at all. [xxii] In the present case, the minds of the assignor and assignee can be said to have not met while entering into the assignment. The assignee never had any intention of undertaking any obligations of the assignor. In Hartog v Colin & Shields, [xxiii] the defendants made an offer to the plaintiffs to sell hare skins, offering to a pay a price per pound instead of per piece. ## AVOIDING THESE RISKS To concretize ICICI Bank’s stand on the assignment of obligations in the matter of loans secured by insurance policies, the relevant security documents could be amended to include such a clause. For instances where loans are secured by life insurance policies, a standard set by the American Banker’s Association (ABA) has been followed by many Indian commercial institutions as well. [xxvi] The ABA is a trade association in the USA representing banks ranging from the smallest community bank to the largest bank holding companies. ABA’s principal activities include lobbying, professional development for member institutions, maintenance of best practices and industry standards, consumer education, and distribution of products and services. [xxvii] There are several ICICI security documents which have included clauses denying any assignment of obligations to it. An extract of the deed of hypothecation for vehicle loan has been reproduced below: “ 3. In further pursuance of the Loan Terms and for the consideration aforesaid, the Hypothecator hereby further agrees, confirms, declares and undertakes with the Bank as follows: (i)(a) The Hypothecator shall at its expenses keep the Assets in good and marketable condition and, if stipulated by the Bank under the Loan Terms, insure such of the Assets which are of insurable nature, in the joint names of the Hypothecator and the Bank against any loss or damage by theft, fire, lightning, earthquake, explosion, riot, strike, civil commotion, storm, tempest, flood, erection risk, war risk and such other risks as may be determined by the Bank and including wherever applicable, all marine, transit and other hazards incidental to the acquisition, transportation and delivery of the relevant Assets to the place of use or installation. The Hypothecator shall deliver to the Bank the relevant policies of insurance and maintain such insurance throughout the continuance of the security of these presents and deliver to the Bank the renewal receipts / endorsements / renewed policies therefore and till such insurance policies / renewal policies / endorsements are delivered to the Bank, the same shall be held by the Hypothecator in trust for the Bank. The Hypothecator shall duly and punctually pay all premia and shall not do or suffer to be done or omit to do or be done any act, which may invalidate or avoid such insurance. In default, the Bank may (but shall not be bound to) keep in good condition and render marketable the relevant Assets and take out / renew such insurance. Any premium paid by the Bank and any costs, charges and expenses incurred by the Bank shall forthwith on receipt of a notice of demand from the Bank be reimbursed by the Hypothecator and/or Borrower to the Bank together with interest thereon at the rate for further interest as specified under the Loan Terms, from the date of payment till reimbursement thereof and until such reimbursement, the same shall be a charge on the Assets…” The inclusion of such a clause in all security documents of the Bank can avoid the problem of assignability of obligations in insurance policies used as security for any facility sanctioned by it. An assignment of securities is of utmost importance to any lender to secure the facility, without which the lender will not be entitled to any interest in the securities so deposited. In this paper, one has seen the need for assignment of securities of a facility. Risks involved in not having a separate clause dealing with non assignability of obligations have been discussed. Certain defences which ICICI Bank may raise in case of the dispute have also been enumerated along with solutions to the same. Formatted by March 2nd, 2019. ## BIBLIOGRAPHY [i] J.H. Tod v. Lakhmidas , 16 Bom 441, 449 [ii] http://www.licindia.in/policy_conditions.htm#12, last visited 30 th June, 2014 [iii] Headwaters Construction Co. Ltd. v National City Mortgage Co. Ltd., 720 F. Supp. 2d 1182 (D. Idaho 2010) [iv] Indian Contract Act and Specific Relief Act, Mulla, Vol. I, 13 th Edn., Reprint 2010, p 968 [v] Khardah Co. Ltd. v. Raymond & Co ., AIR 1962 SC 1810: (1963) 3 SCR 183 [vi] Principles of Insurance Law, M.N. Srinivasan, 8 th Edn., 2006, p. 857 [vii] Ram Baran v Ram Mohit , AIR 1967 SC 744: (1967) 1 SCR 293 [viii] Sri Sarada Mills Ltd. v Union of India, AIR 1973 SC 281 [ix] Lala Kapurchand Godha v Mir Nawah Himayatali Khan, [1963] 2 SCR 168 [x] Velayudhan v Pillaiyar, 9 Mad LT 102 (Mad) [xi] Hindustan Ideal Insurance Co. Ltd. v Satteya, AIR 1961 AP 183 [xii] Mulraj Khatau v Vishwanath, 40 IA 24 – Respondent based his claim on a mere deposit of the policy and not under a written transfer and claimed that a charge had thus been created on the policy. [xiii] Insure Policy Plus Services (India) Pvt. Ltd. v The Life Insurance Corporation of India, 2007(109)BOMLR559 [xiv] Transfer of Property Act, Sanjiva Row, 7 th Edn., 2011, Vol II, Universal Law Publishing Company, New Delhi [xv] Ghaziabad Development Authority v Union of India, AIR 2000 SC 2003 [xvi] United India Insurance Co. Ltd. v M/s. Pushpalaya Printers, [2004] 3 SCR 631, General Assurance Society Ltd. v Chandumull Jain & Anr., [1966 (3) SCR 500] [xvii] UNIDROIT Principles, Art 4.3 [xviii] B.L.Sreedhar & Ors. v K.M. Munireddy & Ors., 2002 (9) SCALE 183 [xix] James Miller & Partners Ltd. v Whitworth Street Estates (Manchester) Ltd., [1970] 1 All ER 796 (HL) [xx] Godhra Electricity Co. Ltd. v State of Gujarat, AIR 1975 SC 32 [xxi] Amalgamated Investment & Property Co. Ltd. v Texas Commerce International Bank Ltd., [1981] 1 All ER 923 [xxii] Smt. Mayawanti v Smt. Kaushalya Devi, 1990 SCR (2) 350 [xxiii] [1939] 3 All ER 566 [xxiv] Terrell v Alexandria Auto Co., 12 La.App. 625 [xxv] http://www.uncitral.org/pdf/english/CISG25/Pamboukis.pdf, last visited on 30 th June, 2014 [xxvi] https://www.phoenixwm.phl.com/shared/eforms/getdoc.jsp?DocId=525.pdf, last visited on 30 th June, 2014 [xxvii] http://www.aba.com/About/Pages/default.aspx, last visited on 30 th June, 2014 ## Related Posts: ## Leave a Comment Cancel reply Give it a try, you can unsubscribe anytime :) Thanks, I’m not interested ## Please enable javascript to view this site. SRD Law Notes Law Notes for Law students. study materials for BSL,LLB, LLM, and Various Diploma courses. ## Assignment of Marine Insurance Policy | Insurance Law Marine insurance - , what police you must specify- , contract must be embodied in policy- , assignment of policy - , assured who has no interest cannot assign- , double insurance -, 24 comments:. 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Some stores have shorter return periods for electronics or seasonal items." Walmart return policy without receipt • Objective Questions with Answers on Law Of Contracts - 19 1) Consider the following statements : A) Every promise is an agreement. B) Every agreement is a contract. C) A contrac... • Objective Questions with Answers on Law Of Contracts - 18 1) Which one of the following element is not necessary for a contract ? A) Competent parties B) Reasonable terms and condition... • Objective Questions with Answers on Law Of Contracts - 17 1) Give correct answer : A) Void agreements are always illegal. B) Illegal agreements are always voidable . C) Illegal a... • The importance of a Computerized Accounting System Computer is an important part of an accounting system. Computerized accounting systems are important to business in various... • Advantages of Law Advantages of Law - There are many Advantages of law... some of the them are as follows : 1) Uniformity and Certainty: ... • Search for chemicals • Candidate List ## Candidate List of substances of very high concern for Authorisation (published in accordance with article 59(10) of the reach regulation). • Authentic version: Only the Candidate List published on this website is deemed authentic. Companies may have immediate legal obligations following the inclusion of a substance in the Candidate List on this website including in particular Articles 7, 31 and 33 of the REACH Regulation. • Numerical identifiers : Each candidate list entry covers both anhydrous and hydrated forms of a substance. The CAS number shown in an entry is typically for the anhydrous form. Hydrated forms of the substance identified by other CAS numbers are still within the scope of the entry. • Other numerical identifiers : For those entries with "-" in the EC number and CAS number columns, a non-exhaustive inventory of EC and/or CAS Registry numbers describing substances or groups of substances considered to fall within the scope of the Candidate List entry is included, where practicably possible. This information can be accessed through the "Details" button of the selected entry. ## Further information • More information about Candidate list of Substances of Very High Concern for Authorisation • Data on Candidate List substances in articles ## See a problem or have feedback? • ← First • Last → Export search results to: Welcome to the ECHA website. This site is not fully supported in Internet Explorer 7 (and earlier versions). Please upgrade your Internet Explorer to a newer version. Close Do not show this message again This website uses cookies to ensure you get the best experience on our websites. Close Find out more on how we use cookies. ## IPS changes homework, discipline policies in bid for equity Sign up for Chalkbeat Indiana’s free daily newsletter to keep up with Indianapolis Public Schools, Marion County’s township districts, and statewide education news. When eighth grader Kelsey Aguilar is called from class to de-escalate a conflict between her peers, she heads to the Guided Learning Center at Harshman Middle School with a calm demeanor. That’s where she’ll get to the heart of an issue between friends or couples, unpacking insults on social media or rumors that could lead to a fight. The mediation program that Aguilar participates in as a peer mediator is part of the school’s restorative justice approach to discipline. It’s less punitive, aims to stop fights before they start, and focuses on healing transgressions between students. It’s a disciplinary approach that Indianapolis Public Schools hopes to embrace district-wide through the adoption of a series of policies that aim to promote equity and reduce barriers to learning that affect certain groups of students. The policies, which the school board has been approving in batches, include a shift in how teachers should approach assigning homework and how the district should identify students for its gifted program. The board approved the latest round of policy changes — including one highlighting restorative justice in student discipline — on Tuesday. The policies could address some of the district’s disparities that are common in education . For example, Black and multiracial students in the district have historically been disciplined at higher rates than their white peers, according to district data . Some of the district’s most popular schools with specialized academic programming are disproportionately white . And while the latest ILEARN state test scores show white students appear to have recovered from pandemic learning loss , Black and Hispanic students have yet to recover to pre-pandemic levels of proficiency. At Harshman, officials say the mediation program has helped reduce the number of suspensions both for Black students and for students overall. And Kelsey believes it has definitely reduced the number of fights among her peers — even though some may see mediation by a classmate as a joke. “I honestly think it’s a serious thing because we’re solving problems with other people,” she said. “I think that’s a great thing for us to do.” ## Changes to dress code, homework assignments adopted The policy changes were proposed by the Culturally Responsive and Equitable Education Committee, which the school board created last year . They reflect much of the district’s ongoing work around expanding academic opportunities to more students of color and those from diverse backgrounds. The district’s Rebuilding Stronger plan, for example, will bring Honors Algebra, Honors Geometry, Honors Biology, and Spanish I classes to all middle schools. The plan will also expand Montessori, STEM, high-ability, dual language, performing arts, and International Baccalaureate academic models to more schools throughout the district. Many of the committee’s proposed changes codify the district’s current equity efforts under Superintendent Aleesia Johnson, said school board member Nicole Carey, who led the creation of the committee. But the policy shifts will hold any future leaders of the district accountable to this equity mindset, she said. Here are equity-focused policies that the board approved in April: • The district’s revised homework policy acknowledges that students come from “diverse backgrounds with different resources and support systems.” The policy says that, “Homework assignments must be equitable and considerate of these varied home environments.” In addition, the policy states that the assignments should also consider students’ academic needs and out-of-school responsibilities. • The district’s revised policy on its gifted and talented program commits the district to using culturally responsive, unbiased assessments to identify students eligible for its academically gifted program. That program is currently housed at the K-8 Sidener Academy but will expand to two separate elementary and middle schools in 2024-25. It also directs the district to actively inform families from diverse backgrounds about the gifted program. (Enrollment data from 2023-24 shows Sidener Academy is whiter and has fewer students qualifying for free or reduced-price meals than the district as a whole.) • The district’s new universal dress code provides less-rigid guidelines that aim to reduce disciplinary actions that keep students out of classrooms. Below are some equity-focused policy changes the board approved Tuesday: • The revised policy on the use of seclusion and restraint requires all administrators, special education teachers, and school-based crisis teams to undergo training in de-escalation techniques and conflict resolution strategies. All incidents involving seclusion or restraint of a student must be documented and provided to the student’s guardian in a timely manner, and an annual report of these incidents will be presented to the board. • Another revised policy directs administration to develop clear, written criteria for the approval of student groups . It also encourages groups that represent diverse demographics and interests. In March, the equity committee proposed a more comprehensive restorative justice policy that would require training for all staff members. But it’s unclear if that will come before the board. ## Restorative justice at Harshman could be inspiration for others Meanwhile, the new discipline policy says restorative justice approaches should be used as alternatives to traditional discipline “when appropriate.” It also says educators should collaborate with families on approaches to discipline. At Harshman Middle School, officials say their mediation program has reduced the number of incidents of aggression or physical fighting between current eighth graders from the first semester of last year to the first semester of this year. Sometimes, peer mediators such as Kelsey are called to oversee a mediation session with staff present. Other times, staff mediate. There are even sessions to resolve conflicts between staff and students. Even the school’s hallways advertise restorative justice. “Problem: Unresolved conflict,” reads one sign. “Solution: Peer mediation. Let’s talk about it!” The school received support from the Peace Learning Center , funded through a grant, to provide mediation training for students and staff. Students are selected as mediators after an interview process. School staff say the program has created a mindset shift in students, who will alert staff members of potential rising tensions between students or request mediation on their own. “They don’t want to fight each other, they don’t want to argue, they don’t want to miss class, they don’t want to be suspended,” said Rockeyah Lord, a dean at the school. Because the program aims to resolve issues before they devolve into fights, Lord said, suspensions overall have decreased. Kelsey said she got involved in the program because she used to be involved in a lot of drama herself — but at times wanted a way to get out of it. “I knew that other people do want to get out of it too sometimes,” she said. “So it’s better to talk about it than to keep going with it.” Amelia Pak-Harvey covers Indianapolis and Lawrence Township schools for Chalkbeat Indiana. Contact Amelia at [email protected] . Illinois high school juniors will have to take the ACT to graduate starting spring 2025. This comes at a time when most colleges and universities are again requiring students to take entrance exams for the admissions process. Council members questioned officials as the looming expiration of federal COVID relief money threatens to shave$808 million from the Education Department’s budget.

The district’s plan calls for training on alternative discipline practices and aims to focus on the “root cause” of student behavior.

The program will train young adults ages 18 to 24 to act “as navigators serving middle and high school students,” according to state officials.

Roughly 12% of Chicago residents age 16 to 24 are not working or in school. Black teens are most impacted.

Representing families challenging school segregation, here’s what the NAACP’s chief legal counsel told the high court.

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by Mohammad Ahmed | May 14, 2024 | Accessibility , How-tos , Instructional design , Services , Universal Design for Learning

This post is the second installment in a series on Universal Design for Learning. For more information, please see previous installments in this series .

When you are designing assignments to help your class practice new concepts, you can set up your students for success by implementing the principles of Universal Design for Learning (UDL).  This involves creating tasks that provide multiple means of representation, expression, and engagement to accommodate the diverse needs and preferences of all learners. Providing multiple options for assignments involves offering students various ways to engage with the material, demonstrate their understanding, and express their learning.

When implementing UDL in your course, be sure to explain the rationale behind different assignment formats. This will make it clear to students that through engaging with various formats they get a variety of ways to practice their knowledge and can develop far stronger skills in order to achieve greater mastery. Also highlight the link between the different formats, for example, that all of these formats contribute to the main learning objectives of the course and that one format is not “easier” or “harder”. Lastly, provide them with necessary feedback to improve their learning irrespective of the format they choose. Below are some strategies you can use to designing assignments with UDL:

• Provide Clear Instructions: Clearly articulate the assignment objectives, expectations, and grading criteria. Consider providing written, spoken, and visual instructions to accommodate different learning preferences. A format-agnostic rubric will help to organize this, and we have resources available for you .
• Offer Multiple Options : Provide students with choices on how they can demonstrate their understanding of the material. This could include options such as written essays, oral presentations, multimedia projects, artistic creations, or hands-on demonstrations.
• Use Varied Formats : Present assignment materials in multiple formats to accommodate different learning styles. Offer readings in text, audio, and video formats, and provide visual aids such as diagrams, charts, and infographics to support comprehension. Allow students to choose the format in which they present their work. Options could include written reports, oral presentations, multimedia presentations (i.e. videos, audios), posters or infographics, or digital portfolios. Some tools that can support this such as Immersive Reader , Panopto Videos , and the OneButton Studio .
• Support Accessibility : Ensure that assignment materials are accessible to all students, including those with disabilities. Use accessible document formats , provide alternative text for images, and consider the needs of students who may require accommodations such as screen readers or captioning.
• Offer Feedback Options : Provide students with options for receiving feedback on their assignments, such as written comments, audio recordings, or face-to-face meetings. Speedgrader is a great resource for written and audio comments. Tailor feedback to individual student needs and preferences. Offer students options for receiving feedback on their assignments. Allow them to choose their preferred method of feedback, such as written comments, audio recordings, video feedback, or face-to-face meetings.
• Promote Reflection : Incorporate opportunities for students to reflect on their learning process and evaluate their own progress. Encourage metacognitive strategies such as goal setting, self-assessment, and reflection journals.

Each one of these strategies can become overwhelming, so start small. Don’t implement all of them at once; instead choose one strategy and implement it into 1 assignment or assessment. This is what Thomas Tobin calls the +1 method 1 : one activity that you already do plus one new, easy strategy. To read more about his strategy you can download his free pdf book UDL for FET Practitioners: Guidance for Implementing Universal Design for Learning .

Let’s take feedback options, for example. After using SpeedGrader to grade the students’ exams, many faculty and instructors typically offer some text feedback; however, you can easily implement a UDL strategy by also offering verbal feedback through the recorded audio button near the bottom of the feedback panel in SpeedGrader. You can make this a 1+1 goal for the next quarter, and as you become more proficient with this strategy you can slowly increase it to monthly and then weekly implementations.

By providing multiple options for UDL assignments, you can accommodate diverse learning styles, preferences, and abilities, and empower students to take ownership of their learning experiences.

## Further Resources:

• Review Academic Technology Solutions’ full list of Teaching Tools .
• Learn About Universal Design for Learnin g from CAST.
• Explore the University of Chicago’s   Center for Digital Accessibility .
• Request an instructional design consultation with LDT instructional designers.
• Request digital media consultation and development services in support of teaching materials and the presentation of research.
• Request custom workshops for departments or programs who want to tailor the content to their instructors or subject area.
• Join us in office hours , virtual or hybrid, during which you can ask any questions you may have.
• Join our online workshops on various topics related to teaching with technology.

1 Tobin, T. J. (2021). UDL for FET Practitioners. SOLAS. April 15, 2024, https://www.ahead.ie/udlforfet-guidance .

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A sample letter agreement to be used by a distributor of goods to transfer a third-party manufacturer's warranties to the distributor's customer in a business-to-business transaction, where the distributor's customer will use, rather than resell, the goods. This Standard Document has integrated notes with important explanations and drafting tips.

12. Collateral warranties

A collateral warranty is a promise by the contractor or a professional consultant (the warrantor) to carry out its obligations under a building contract or professional appointment for the benefit of a third party who has an interest in the construction project such as a purchaser, funder or tenant. These two cases cover (i) if a collateral ...

13. Assignment in Insurance Policy

Assignment means a complete transfer of the ownership of the policy to some other person. Usually assignment is done for the purpose of raising a loan from a bank or a financial institution. Assignment is governed by Section 38 of the Insurance Act 1938 in India. Assignment can also be done in favour of a close relative when the policyholder ...

14. Assignable Warranties Sample Clauses

Assignable Warranties. On the Delivery Date, Lessor will assign or make available to Lessee for the duration of the Lease Term the benefit of all assignable warranties given to Lessor by the Airframe Manufacturer, the Engine Manufacturer or any other Manufacturer or as such warranties have been assigned to Lessor by Lessee pursuant to the Purchase Agreement Assignment and/or the Engine ...

15. Assignee claims under collateral warranties and "no loss" clauses

A recent TCC decision has considered the recoverability of assignee losses under a collateral warranty which contained an express "no loss" clause. The case involved an assignment by a funder through to a building owner who then made a claim for defects remediation. Such losses were held not to be too remote to be claimed by an assignee and ...

16. Assignment under Insurance Policies

1.1. Effect of Assignment. Immediately on the execution of an assignment of an insurance policy, the assignor forgoes all his rights, title and interest in the policy to the assignee. The premium or loan interest notices etc. in such cases will be sent to the assignee.

17. Assignment of Marine Insurance Policy

Assignment of Policy -. When and how policy is assignable- according to Section 52-. (1) A Marine Policy may be transferred by assignment unless it contains terms expressly prohibiting assignment. It may be assigned either before or after loss. (2) where A marine policy has been assigned so as to pass the beneficial interest in such policy, the ...

18. Assignment Of Warranties

Description Warranty Claim. An assignment consists of a transfer of property or some right or interest in property from one person to another. Unless an assignment is qualified in some way, it is generally considered to be a transfer of the transferor's entire interest in the interest or thing assigned. Unless there is a statute that requires ...

19. Candidate List of substances of very high concern for Authorisation

Notes: Authentic version: Only the Candidate List published on this website is deemed authentic.Companies may have immediate legal obligations following the inclusion of a substance in the Candidate List on this website including in particular Articles 7, 31 and 33 of the REACH Regulation.

20. ASSIGNMENT OF WARRANTY RIGHTS Sample Clauses

Related to ASSIGNMENT OF WARRANTY RIGHTS. Assignment of Warranties Each Schedule is intended to be a true lease and operating lease as defined in Tex. Bus. & Comm. Code Article 2A. Lessor has acquired or will acquire the Assets in connection with this MOLA and hereby agrees to assign to Lessee any warranties provided to Lessor with respect to the Assets during the Term of the applicable ...

21. Are home warranties policies worth the money?

The fine print of the policy said Select Home Warranty would only pay up to $500 to replace appliances. Ouellette admits she hadn't read the part about the$500 cap.

22. Homework, discipline, dress code: IPS believes these policy changes

Changes to dress code, homework assignments adopted. The policy changes were proposed by the Culturally Responsive and Equitable Education Committee, which the school board created last year.

23. Assignment of Warranties Definition

Assignment of Warranties means an assignment by the Vendor, from and after the Closing Date of the Vendor's right, title, interest and benefit in and under any Warranties, to the extent they are assignable. Sample 1 Sample 2. Based on 2 documents. Assignment of Warranties means the Assignment of Warranties in the form of Exhibit E attached ...

24. Implement Universal Design for Learning with Assignments

When you are designing assignments to help your class practice new concepts, you can set up your students for success by implementing the principles of Universal Design for Learning (UDL). This involves creating tasks that provide multiple means of representation, expression, and engagement to accommodate the diverse needs and preferences of ...