Assignment (Statutory assignment)

Assignment is the principal method of transferring the benefits of a contract to a third party. for example: A (the assignor or creditor) transfers the benefit to a third party, C (the assignee), the consequence of which C would be able to sue B (the debtor) being the person liable under the contract. The expression choses in action refers to all personal rights of property but enforceable not by talking physical possession but on by by action.

Assignment under Civil Law Act 1956
Section 4(3) of Civil Law Act provides:
"Any absolute assignment, by writing, under the hand of
the assignor, not purporting to be by way of charge only, of any
debt or other legal chose in action, of which express notice in
writing has been given to the debtor, trustee or other person from
whom the assignor would have been entitled to receive or claim
the debt or chose in action, shall be, and be deemed to have been,
effectual in law, subject to all equities which would have been
entitled to priority over the right of the assignee under the law as
it existed in the State before the date of the coming into force of
this Act, to pass and transfer the legal right to the debt or chose in
action, from the date of the notice, and all legal and other
remedies for the same, and the power to give a good discharge for
the same, without the concurrence of the assignor." For the reference & interpretation of the act, we can refer it in English position in s.136 (1) of the Law of Property Act 1925 which provides:

" Any absolute assignment , by writing, under the hand of the assignor (not purporting to be by the way of charge only) of any debt or other legal thing in action, of which express notice in writing has been given to the debtor, trustee or other person from whom the assignor would have been entitled to claim such debt or thing in action, is effectual in law (subject to equities having priority over the right of the assignee) to pass and transfer from the date of such notice-
(a) the legal right to such debt or thing in action
(b) all legal & other remedies for the same; &
(c) the power to give the good discharge for the same without concurrence of the assignor. "

When the conditions in s 4(3) is fulfill and the parties agreed with the conditions the effects of it is the the assignor would be the holder of legal title to the right assigned & enabling him to sue, without the need to join the assignor as a party.

Case: Cator v Crydon Coral Co
-an assignee may sue in his own name against the debtor
Case: MBF Factors Sdn Bhd v Tay Hing Ju
- Jefrey Tan J explain : " wheres s 4(3) CLA applies, the assignee is allowed to sue the debtor in his own name instead of having to sue in the name of assignor & perhaps having to go to a court to compel his joinder in the action. Thus, the position is the same in England..."

Condition in statutory assignment that must be fulfill:
(1) the assignment must be absolute, it will not absolute if the assignment have the condition (but still can be accept as equitable assignment, but the sue action cannot be taken on the own name)
(2) the assignment must be in writing & signed by the assignor
(3) notice must be given to the debtor from whom the assignor would have been able to claim (assignee must give notice to the debtor)
Case: In Dearle v Hall, the court held that an assignee must give notice to the debtor in order to secure his title against other assignee.
(4) not purporting by the way of charge

END.
To be continue with the equitable assignment...:>