The Nature of an Assignee's Right to Damages for Breaches of Contract that Occur Prior to Assignment

Abstract

This article examines the nature of an assignee's right to damages where the breach of contract occurs prior to the assignment. In order to avoid what is thought to be a black hole in contract remedies, recent cases have suggested that the assignee recovers for its personal loss whether or not the assignor suffered any loss. This article suggests that that reasoning is misguided and has resulted in an improper fusion of issues that are relevant to the recovery of damages in contract law with principles governing assignments.

Keywords: Assignment, Assignment of Contractual Rights, Breach of Contract Prior to Assignment, Assessment of Damages

JEL Classification: K12, K30, K10