Sandvick worked as a civil litigator in California for over 7 years.
A contract is an agreement between at least two parties—A and B.
Different jurisdictions follow different rules regarding the priority of the assignees.
Some jurisdictions allow that the first assignee of a contract who gives notice to the obligor has priority over other assignees.
Doing so may detriment the obligor who has to meet a new (and possibly more taxing) delivery schedule.
Increases Burden or Risk – Generally, any contract that materially increases the other party’s burden, risk, or ability to receive return performance is not delegable.
As such, requirement contracts generally cannot be delegated because the producer’s duty depends on the individual output requirements of the purchaser.
Multiple Assignments – A party can partially assign a contract or assign the same contract to multiple parties.
Other jurisdictions follow the rule that the first assignee to receive assignment of a contract has priority to performance by the obligor.
Still other jurisdictions follow the rule that the first assignee has priority, unless: Purchaser in Good Faith for Value – If an assignee pays value for the assignment in good faith without notice of a prior assignment (and the prior assignee did not receive the assignment in good faith and for value), she has priority over prior assignments.