Does an acknowledgement of a notice of assignment create enforceable obligations between the assignee and the recipient of the notice?

Summary

A simple acknowledgement of a notice of assignment of a contract or debt by the relevant contract counterparty of the assignor (the recipient) when signed will not create binding obligations between the recipient and the assignee over and above those created by the subject matter of the assignment. Only if the notice seeks contractual undertakings from the counterparty and is supported by consideration can such additional obligations arise out of the signed acknowledgement. It will also be difficult for the assignee to establish a signed acknowledgement on its own constitutes a waiver of any right or forms the basis for a claim in estoppel.

Useful materials

For information in general on assignments by way of security and taking security over contractual rights, see Practice Notes:

1. •

   Assignments by way of security, and

2. •

   Taking security over contractual rights

Assignments and the need for notice

Under section 136 of the Law of Property Act 1925 (LPA 1925), an absolute