Themis Contracts Practice Exam

Are anti-assignment clauses generally enforceable, and what is the effect of an assignment on the obligor's duties?

Yes, enforceable; the assignment automatically relieves the obligor of duties. No, anti-assignment clauses are rarely enforceable; assignment has no effect on duties. Yes, typically enforceable; an assignment does not automatically relieve the assignor from obligations. No, assignments automatically discharge all duties from the obligor.

Correct Answer:

Yes, typically enforceable; an assignment does not automatically relieve the assignor from obligations.

Explanation:

The main idea is that anti-assignment clauses control who can hold the rights under a contract, and they are typically enforceable, meaning you can’t freely transfer those rights without consent. But transferring rights—the assignment—does not automatically discharge the party who owes duties. The obligor remains liable to perform as promised unless there is a substitution of parties through a novation or a clear release. In other words, you can transfer the benefit of the contract, but you don’t automatically wipe out the original party’s obligations; only a novation—which replaces the obligor with the new party and releases the original obligor—will relieve them of duties.

Access more questions from this quiz

Continue to Themis Contracts Practice Exam for more practice questions and the full quiz experience.

Access More Questions