Question

Parks, a 7-foot, 265-pound center for the Sand Diego Slick, objected when his contract was assigned from the ABC Corporation to the XYZ Corporation, the team’s new owner. The change of owners did not cause a change in the composition of the team although a new coach was hired. Parks’s compensation and his responsibilities remained the same.

Was this contract assignable?

Answer 1

Contracts are typically assignable unless they are for personal services or the change would significantly affect the performance expected. in Parks's case, since his role and compensation did not change with the team's ownership transfer, his contract was likely assignable.

Step-by-step explanation:

Generally speaking, contracts are assignable unless the contract involves personal services or where assignment would significantly change the obligee's expected performance. The fact that Parks, a 7-foot, 265-pound center for the Sand Diego Slick, objected to the assignment of his contract from the ABC Corporation to the XYZ Corporation, is not determinative of the contract's assignability.

Since the ownership change did not alter the composition of the team, the new coach does not appear to be a personal service unique to the original owner, and because Park's compensation and responsibilities remained the same, it is likely that the contract was indeed assignable.