59.1-505.4 - Effect of transfer of contractual interest. - Virginia Statutes

§ 59.1-505.4. Effect of transfer of contractual interest.

(a) A transfer of "the contract" or of "all my rights under thecontract," or a transfer in similar general terms, is a transfer of allcontractual interests under the contract. Whether the transfer is effectiveis determined by §§ 59.1-505.3 and 59.1-505.8 (a) (1) (B).

(b) The following rules apply to a transfer of a party's contractualinterests:

(1) The transferee is subject to all contractual use terms.

(2) Unless the language or circumstances otherwise indicate, as in a transferas security, the transfer delegates the duties of the transferor andtransfers its rights.

(3) Acceptance of the transfer is a promise by the transferee to perform thedelegated duties. The promise is enforceable by the transferor and any otherparty to the original contract.

(4) The transfer does not relieve the transferor of any duty to perform, orof liability for breach of contract, unless the other party to the originalcontract agrees that the transfer has that effect.

(c) A party to the original contract, other than the transferor, may treat atransfer that conveys a right or duty of performance without its consent ascreating reasonable grounds for insecurity and, without prejudice to theparty's rights against the transferor, may demand assurances from thetransferee under § 59.1-507.8.

(2000, cc. 101, 996.)