Assignment Of Claim Agreement Template for England and Wales

An Assignment Of Claim Agreement is a legal document that allows you to transfer your rights in a claim to another party under England and Wales law. This transfer gives the assignee the legal standing to pursue the claim in their own name, while releasing you from any further obligation to pursue it yourself. The document must comply with strict statutory requirements under the Law of Property Act 1925 to ensure the assignment is legally valid and enforceable.

When do you need this document?

You need an Assignment Of Claim Agreement when transferring debt collection rights to a specialist agency, selling outstanding invoices to improve cash flow, or restructuring corporate assets during mergers and acquisitions. Litigation funders also use these agreements when acquiring claims in exchange for funding legal proceedings. The document is essential whenever you want to monetise a claim without pursuing it yourself, or when business circumstances require transferring legal rights to recover debts or damages to another entity.

Key legal considerations

The assignment must be absolute and unconditional to qualify as a legal assignment under Section 136 of the Law of Property Act 1925. You must provide written notice to the original debtor for the assignment to be effective, and the document should include comprehensive warranties about the validity and enforceability of the claim. Consider whether the claim involves personal rights that cannot be assigned, and ensure any limitation periods under the Limitation Act 1980 are clearly addressed. The agreement should specify what consideration is being paid and include provisions for further assurance if additional documentation is needed to perfect the assignment.

Legal requirements in England and Wales

Under England and Wales law, the assignment must be in writing and signed by the assignor to comply with the Law of Property Act 1925. Written notice must be given to the debtor, though this can occur after the assignment is executed. The document must clearly identify the claim being assigned and cannot be conditional or partial if you want the benefits of statutory assignment. Compliance with the Law of Property (Miscellaneous Provisions) Act 1989 may be required for certain types of claims, and you should consider the impact of the Contracts (Rights of Third Parties) Act 1999 on any third-party rights. The Civil Procedure Rules contain specific provisions about assigned causes of action that may affect how the claim can be pursued in court.