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Law Governing Assignability of Contract Rights

The validity, enforceability or effect of an assignment is governed by the law of the place where the assignment was made.  A state can prescribe formalities for the transfer within its borders of a chose in action, even though it is a contract made in another state.[i] However, the law of the place of contracting determines if a contractual right is capable of being transferred by the owner.   Furthermore, in a jurisdiction that allows parties to control the choice of law by contractual provisions, a contractual provision selecting one state’s law to control whether the agreement may be assigned will be given effect.  A valid contract made in one state is considered to be valid in another jurisdiction unless contrary to the public policy of the other jurisdiction.

[i] Northwestern Mut. Life. Ins. Co. v. Adams, 155 Wis.355  (Wis. 1914)

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