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assignmenttransferred lossprivity
Linden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd
[1994] 1 AC 85 (also reported [1993] UKHL 4)
Key Principle
A contractual prohibition on assignment is effective to render an attempted assignment of the benefit of the contract (including accrued rights of action) ineffective against the other party; but where such an assignment fails, the original contracting party may, exceptionally, recover substantial damages on behalf of a third party who suffers the loss (the exception to the rule that a claimant recovers only its own loss).
Area of Law
Contract and Commercial
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