Assignment Of Contractual Rights And Its Impact
On Arbitration Agreements
The assignability of contractual rights has long been discussed in terms of the privity of contract. In modern legal systems, it is widely accepted that contractual rights can freely be assigned. However, there are also exceptions to this rule, such as non-assignability clauses in the contracts and personal nature of contractual rights. One of the most important issues as regards the assignment of contractual rights is the fate of arbitration agreements, which are directly related to the right to sue and therefore constitute an accessory of the assigned contractual right. The discussion is focused on the question whether arbitration agreements are automatically transferred through the assignment of contractual rights. The arguments raised by the advocates and opponents of the automatic transfer rule are further analyzed in this article.
Keywords: Assignment, contractual right, privity, arbitration agreement, automatic transfer.