Warranty of Assignment Law and Legal Definition
Warranty of assignment refers to an assignor’s implied warranty. The term assignment in the law of contracts refers to transfer of rights. Under a warranty of assignment, an assignment is deemed to be legally effective if an assignor has transferred the rights in the present. An assignment has no legal effect if an assignor promises to transfer rights in future. An assignor makes an assignment with an implied warranty that the right to assign is not subject to defenses. If the contract had a provision that made an assignment ineffective, an assignee could sue the assignor for breach of this implied warranty. Under the warranty of assignment, an assignee can also sue if an assignor wrongfully revoked the assignment. [Trostel v. American Life & Cas. Ins. Co., 168 F.3d 1105 (8th Cir. Iowa 1999)]
An assignor’s implied warranty under a warranty of assignment are the following:
1.The assignor has the legal rights assigned ;
2.The assignor will do nothing to interfere with those rights;
3.The assignor knows of nothing that impairs the value of the assignment.
