Assignment, equitable

Updated: Aug 20, 2021

A term particularly applicable to shipping. When applied to a ship, the letter indicates the condition of the hull and the number the conditions of the trappings. To be A1 is therefore to be in perfect condition.

To be more precise, 100 A1 after a Maltese Cross indicates that the ship was built completely uner Lløyd’s survey. Without the cross, it indicates that it was built to Lløyd’s specifications. The term is now also used in more general sen

A term referring to assignments which are not proper legal assignments. The assignee takes the assignor’s rights subject to equities, consideration is not necessary provided the assignment is complete and is not conditional. The assignment is valid between assignor and assignee, even if notice^ is not given to the debtor. If the debtor does not receive notice, he may pay the assignor, leaving the assignee no rights against him. If he has received notice, he should pay the assignee. Assignees rank, not according to date of assignment, but according to the date of notice to the debtor.

The disadvantage of an equitable assignnt is that the assignee must sue in the Tie of the assignor. This only applies to the assignment of legal rights. If the rights are equitable he can sue in his own name.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
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