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Assignees May Sue for Breach of Contract Under Texas Law

Written by John McConnell on June 8, 2021 . Posted in News .

The original parties to the contract are not the only parties who can sue on a contract. Assignees and third-party beneficiaries may also sue. This article deals with the rights of assignees.

Assignments are governed by general contract law. Cadle Co. v. Henderson , 982 S.W.2d 543, 546 (Tex. App.—San Antonio 1998, no pet.). “As a general rule, all contracts are assignable.” Crim Truck & Tractor Co. v. Navistar Intern. Transp. Corp. , 823 S.W.2d 591, 596 (Tex. 1992).  Assignments may be whole or partial. Ins. Network of Tex. v. Kloesel , 266 S.W.3d 456, 465 (Tex. App.—Corpus Christi 2008, pet. denied). An “assignment” is a transfer of some right or interest to an assignee who receives the authority to assert that right. Matter of Estate of Abraham , 583 S.W.3d 374, 379 (Tex. App.—El Paso 2019, pet. denied).

“[T]here are no required forms or formalities by which an assignment must be made.” In re Cooper Mfg. Corp. , 344 B.R. 496, 508 (Bankr. S.D. Tex. 2006) (applying Texas law). Like contracts in general, assignments need not be in writing, can be oral, do not need any particular form of words, and can even be inferred from circumstances showing the intent to assign. Banco Longoria, S. A. v. El Paso Nat. Bank , 415 S.W.2d 1, 5 (Tex. Civ. App.—Eastland 1967, writ ref’d n.r.e.); Brown v. Mesa Distributors, Inc. , 414 S.W.3d 279, 285 (Tex. App.—Houston [1st Dist.] 2013, no pet.); Escalante v. Luckie , 77 S.W.3d 410, 418 (Tex. App.—Eastland 2002, pet. denied); Adkins Services, Inc. v. Tisdale Co., Inc. , 56 S.W.3d 842, 846 (Tex. App.—Texarkana 2001, no pet.).

An assignment is created upon a manifestation of intent to transfer a right to another – that’s it. Miller v. Bank of the W. , 01-88-00195-CV, 1988 WL 88320, at *2 (Tex. App.—Houston [1st Dist.] Aug. 25, 1988, no writ); Banco Popular, N. Am. v. Kanning , 638 Fed. Appx. 328, 334 (5th Cir. 2016) (applying Texas law). An assignment may be proven by oral testimony. Adkins Services, Inc. v. Tisdale Co., Inc. , 56 S.W.3d 842, 846 (Tex. App.—Texarkana 2001, no pet.). An assignment may be shown or proven by circumstantial evidence. Banco , 638 Fed. Appx. at 334 (5th Cir. 2016).

“A plaintiff establishes standing to maintain a breach-of-contract action by demonstrating that it has an enforceable interest as a party to the contract, as an assignee of a party , or as a third party beneficiary.” Republic Petroleum LLC v. Dynamic Offshore Res. NS LLC , 474 S.W.3d 424, 430 (Tex. App.—Houston [1st Dist.] 2015, pet. denied) (emphasis added). See also , Foster v. Nat’l Collegiate Student Loan Tr. 2007-4 , 01-17-00253-CV, 2018 WL 1095760, at *8 (Tex. App.—Houston [1st Dist.] Mar. 1, 2018, no pet.) (since assignee stands in shoes of assignor, assignee has privity and may sue for breach of contract); Frontier Communications Nw., Inc. v. D.R. Horton, Inc. , 02-13-00037-CV, 2014 WL 7473764, at *1 (Tex. App.—Fort Worth Dec. 31, 2014, no pet.) (“To establish standing to assert a breach of contract cause of action, a party must prove its privity to the agreement or that it is a third-party beneficiary or assignee.”). An assignment places the assignee in privity of contract with the other contracting party. Stark v. Am. Nat. Bank of Beaumont , 100 S.W.2d 208, 213 (Tex. Civ. App.—Beaumont 1936, writ ref’d); Dodd v. Terrill , 05-93-00268-CV, 1994 WL 24378, at *5 (Tex. App.—Dallas Jan. 28, 1994, writ denied).

This article represents one author’s viewpoint and is not a substitute for legal advice .

assignees , breach of contract , contract law , rights under contract , texas contract law

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  • Title 48 —Federal Acquisition Regulations System
  • Chapter 1 —Federal Acquisition Regulation
  • Subchapter E —General Contracting Requirements
  • Part 32 —Contract Financing
  • Subpart 32.8

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Subpart 32.8
32.800
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40 U.S.C. 121(c) ; 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016 ); and 51 U.S.C. 20113 .

48 FR 42328 , Sept. 19, 1983, unless otherwise noted.

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Subpart 32.8—assignment of claims, 32.800 scope of subpart..

This subpart prescribes policies and procedures for the assignment of claims under the Assignment of Claims Act of 1940, as amended, ( 31 U.S.C. 3727 , 41 U.S.C. 6305 ) (hereafter referred to as the Act ).

[ 48 FR 42328 , Sept. 19, 1983, as amended at 51 FR 2665 , Jan. 17, 1986; 79 FR 24212 , Apr. 29, 2014]

32.801 Definitions.

Designated agency, as used in this subpart, means any department or agency of the executive branch of the United States Government (see 32.803(d)).

No-setoff commitment, as used in this subpart, means a contractual undertaking that, to the extent permitted by the Act, payments by the designated agency to the assignee under an assignment of claims will not be reduced to liquidate the indebtedness of the contractor to the Government.

[ 48 FR 42328 , Sept. 19, 1983, as amended at 60 FR 49730 , Sept. 26, 1995; 66 FR 2132 , Jan. 10, 2001]

32.802 Conditions.

Under the Assignment of Claims Act, a contractor may assign moneys due or to become due under a contract if all the following conditions are met:

( a ) The contract specifies payments aggregating $1,000 or more.

( b ) The assignment is made to a bank, trust company, or other financing institution, including any Federal lending agency.

( c ) The contract does not prohibit the assignment.

( d ) Unless otherwise expressly permitted in the contract, the assignment—

( 1 ) Covers all unpaid amounts payable under the contract;

( 2 ) Is made only to one party, except that any assignment may be made to one party as agent or trustee for two or more parties participating in the financing of the contract; and

( 3 ) Is not subject to further assignment.

( e ) The assignee sends a written notice of assignment together with a true copy of the assignment instrument to the—

( 1 ) Contracting officer or the agency head;

( 2 ) Surety on any bond applicable to the contract; and

( 3 ) Disbursing officer designated in the contract to make payment.

32.803 Policies.

( a ) Any assignment of claims that has been made under the Act to any type of financing institution listed in 32.802(b) may thereafter be further assigned and reassigned to any such institution if the conditions in 32.802(d) and (e) continue to be met.

( b ) A contract may prohibit the assignment of claims if the agency determines the prohibition to be in the Government's interest.

( c ) Under a requirements or indefinite quantity type contract that authorizes ordering and payment by multiple Government activities, amounts due for individual orders for $1,000 or more may be assigned.

( d ) Any contract of a designated agency (see FAR 32.801), except a contract under which full payment has been made, may include a no-setoff commitment only when a determination of need is made by the head of the agency, in accordance with the Presidential delegation of authority dated October 3, 1995, and after such determination has been published in the Federal Register. The Presidential delegation makes such determinations of need subject to further guidance issued by the Office of Federal Procurement Policy. The following guidance has been provided: Use of the no-setoff provision may be appropriate to facilitate the national defense; in the event of a national emergency or natural disaster; or when the use of the no-setoff provision may facilitate private financing of contract performance. However, in the event an offeror is significantly indebted to the United States, the contracting officer should consider whether the inclusion of the no-setoff commitment in a particular contract is in the best interests of the United States. In such an event, the contracting officer should consult with the Government officer(s) responsible for collecting the debt(s).

( e ) When an assigned contract does not include a no-setoff commitment, the Government may apply against payments to the assignee any liability of the contractor to the Government arising independently of the assigned contract if the liability existed at the time notice of the assignment was received even though that liability had not yet matured so as to be due and payable.

[ 48 FR 42328 , Sept. 19, 1983, as amended at 60 FR 49730 , Sept. 26, 1995; 61 FR 18921 , Apr. 29, 1996]

32.804 Extent of assignee's protection.

( a ) No payments made by the Government to the assignee under any contract assigned in accordance with the Act may be recovered on account of any liability of the contractor to the Government. This immunity of the assignee is effective whether the contractor's liability arises from or independently of the assigned contract.

( b ) Except as provided in paragraph (c) below, the inclusion of a no-setoff commitment in an assigned contract entitles the assignee to receive contract payments free of reduction or setoff for—

( 1 ) Any liability of the contractor to the Government arising independently of the contract; and

( 2 ) Any of the following liabilities of the contractor to the Government arising from the assigned contract:

( i ) Renegotiation under any statute or contract clause.

( ii ) Fines.

( iii ) Penalties, exclusive of amounts that may be collected or witheld from the contractor under, or for failure to comply with, the terms of the contract.

( iv ) Taxes or social security contributions.

( v ) Withholding or nonwithholding of taxes or social security contributions.

( c ) In some circumstances, a setoff may be appropriate even though the assigned contract includes a no-setoff commitment, e.g.—

( 1 ) When the assignee has neither made a loan under the assignment nor made a commitment to do so; or

( 2 ) To the extent that the amount due on the contract exceeds the amount of any loans made or expected to be made under a firm commitment for financing.

32.805 Procedure.

( a ) Assignments.

( 1 ) Assignments by corporations shall be—

( i ) Executed by an authorized representative;

( ii ) Attested by the secretary or the assistant secretary of the corporation; and

( iii ) Impressed with the corporate seal or accompanied by a true copy of the resolution of the corporation's board of directors authorizing the signing representative to execute the assignment.

( 2 ) Assignments by a partnership may be signed by one partner, if the assignment is accompanied by adequate evidence that the signer is a general partner of the partnership and is authorized to execute assignments on behalf of the partnership.

( 3 ) Assignments by an individual shall be signed by that individual and the signature acknowledged before a notary public or other person authorized to administer oaths.

( b ) Filing. The assignee shall forward to each party specified in 32.802(e) an original and three copies of the notice of assignment, together with one true copy of the instrument of assignment. The true copy shall be a certified duplicate or photostat copy of the original assignment.

( c ) Format for notice of assignment. The following is a suggested format for use by an assignee in providing the notice of assignment required by 32.802(e).

Notice of Assignment

TO: __________ [ address to one of the parties specified in 32.802(e) ].

This has reference to Contract No. ______ dated ______, entered into between ________ [ contractor's name and address ] and ________ [ government agency, name of office, and address ], for ________ [ describe nature of the contract ].

Moneys due or to become due under the contract described above have been assigned to the undersigned under the provisions of the Assignment of Claims Act of 1940, as amended, ( 31 U.S.C. 3727 , 41 U.S.C. 6305 ).

A true copy of the instrument of assignment executed by the Contractor on ________ [ date ], is attached to the original notice.

Payments due or to become due under this contract should be made to the undersigned assignee.

Please return to the undersigned the three enclosed copies of this notice with appropriate notations showing the date and hour of receipt, and signed by the person acknowledging receipt on behalf of the addressee.

Very truly yours,

[ name of assignee ]

[ signature of signing officer

[ title of signing officer ]

[ address of assignee ]

Acknowledgement

Receipt is acknowledged of the above notice and of a copy of the instrument of assignment. They were received at ____ (a.m.) (p.m.) on ________, 20____.

[ signature ]

On behalf of

[ name of addressee of this notice ]

( d ) Examination by the Government. In examining and processing notices of assignment and before acknowleging their receipt, contracting officers should assure that the following conditions and any additional conditions specified in agency regulations, have been met:

( 1 ) The contract has been properly approved and executed.

( 2 ) The contract is one under which claims may be assigned.

( 3 ) The assignment covers only money due or to become due under the contract.

( 4 ) The assignee is registered separately in the System for Award Management unless one of the exceptions in 4.1102 applies.

( e ) Release of assignment.

( 1 ) A release of an assignment is required whenever—

( i ) There has been a further assignment or reassignment under the Act; or

( ii ) The contractor wishes to reestablish its right to receive further payments after the contractor's obligations to the assignee have been satisfied and a balance remains due under the contract.

( 2 ) The assignee, under a further assignment or reassignment, in order to establish a right to receive payment from the Government, must file with the addressees listed in 32.802(e) a—

( i ) Written notice of release of the contractor by the assigning financing institution;

( ii ) Copy of the release instrument;

( iii ) Written notice of the further assignment or reassignment; and

( iv ) Copy of the further assignment or reassignment instrument.

( 3 ) If the assignee releases the contractor from an assignment of claims under a contract, the contractor, in order to establish a right to receive payment of the balance due under the contract, must file a written notice of release together with a true copy of the release of assignment instrument with the addressees noted in 32.802(e).

( 4 ) The addressee of a notice of release of assignment or the official acting on behalf of that addressee shall acknowledge receipt of the notice.

[ 48 FR 42328 , Sept. 19, 1983, as amended at 51 FR 2665 , Jan. 17, 1986; 52 FR 9039 , Mar. 20, 1987; 62 FR 237 , Jan. 2, 1997; 64 FR 10533 , Mar. 4, 1999; 65 FR 24325 , Apr. 25, 2000; 68 FR 56673 , Oct. 1, 2003; 78 FR 37679 , June 21, 2013; 79 FR 24212 , Apr. 29, 2014]

32.806 Contract clauses.

( 1 ) The contracting officer shall insert the clause at 52.232-23, Assignment of Claims, in solicitations and contracts expected to exceed the micro-purchase threshold, unless the contract will prohibit the assignment of claims (see 32.803(b)). The use of the clause is not required for purchase orders. However, the clause may be used in purchase orders expected to exceed the micro-purchase threshold, that are accepted in writing by the contractor, if such use is consistent with agency policies and regulations.

( 2 ) If a no-setoff commitment has been authorized (see FAR 32.803(d)), the contracting officer shall use the clause with its Alternate I.

( b ) The contracting officer shall insert the clause at 52.232-24, Prohibition of Assignment of Claims, in solicitations and contracts for which a determination has been made under agency regulations that the prohibition of assignment of claims is in the Government's interest.

[ 48 FR 42328 , Sept. 19, 1983, as amended at 51 FR 2665 , Jan. 17, 1986; 60 FR 49730 , Sept. 26, 1995; 61 FR 18921 , Apr. 29, 1996]

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31 U.S. Code § 3727 - Assignments of claims

Historical and Revision Notes

3727(a)

31:203(1st par. words before 9th comma).

R.S. § 3477; (last par. on p. 411), ; (related to § 3477), ; (related to § 1 related to § 3477), .

3727(b)

31:203(1st par. words after 9th comma, 3d, last pars.).

3727(c)

31:203(2d par.).

3727(d)

31:203(5th par.).

3727(e)(1)

31:203(4th par.).

3727(e)(2)

31:239.

, .

In subsection (a)(1), the words “or share thereof” and “whether absolute or conditional, and whatever may be the consideration therefor” are omitted as surplus. In clause (2), the word “authorization” is substituted for “powers of attorney, orders, or other authorities” to eliminate unnecessary words.

In subsections (b) and (c), the word “official” is substituted for “officer” for consistency in the revised title and with other titles of the United States Code.

In subsection (b), the words “Except as hereinafter provided” are omitted as unnecessary. The words “read and” are omitted as surplus. The words “to the person acknowledging the same” are omitted as unnecessary. The text of 31:203(1st par. last sentence) is omitted as superseded by 39:410. The words “Notwithstanding any law to the contrary governing the validity of assignments ” and the text of 31:203(last par.) are omitted as unnecessary.

In subsection (c), before clause (1), the words “bank, trust company, or other . . . including any Federal lending agency” are omitted as surplus. The words “of money due or to become due under a contract providing for payments totaling at least $1,000” are substituted for “in any case in which the moneys due or to become due from the United States or from any agency or department thereof, under a contract providing for payments aggregating $1,000 or more” to eliminate unnecessary words. The text of 31:203(2d par. proviso cl. 1) is omitted as executed. In clause (1), the words “in the case of any contract entered into after October 9, 1940 ” are omitted as executed. In clause (2)(A), the words “payable under such contract” are omitted as surplus. In clause (3), the words “true” and “instrument of” are omitted as surplus. The words “department or” are omitted because of the restatement. The words “if any” and “to make payment” are omitted as surplus.

In subsection (d), before clause (1), the words “During a war or national emergency proclaimed by the President or declared by law and ended by proclamation or law” are substituted for “in time of war or national emergency proclaimed by the President (including the national emergency proclaimed December 16, 1950 ) or by Act or joint resolution of the Congress and until such war or national emergency has been terminated in such manner” to eliminate unnecessary words. The words “ Department of Energy (when carrying out duties and powers formerly carried out by the Atomic Energy Commission)” are substituted for “Atomic Energy Commission” (which was reconstituted as the Energy Research and Development Administration by 42:5813 and 5814) because of 42:7151(a) and 7293. The words “other department or . . . of the United States . . . except any such contract under which full payment has been made” and “of any moneys due or to become due under such contract” before “shall not be subject” are omitted as surplus. The words “A payment subsequently due under the contract (even after the war or emergency is ended) shall be paid to the assignee without” are substituted for “and if such provision or one to the same general effect has been at any time heretofore or is hereafter included or inserted in any such contract, payments to be made thereafter to an assignee of any moneys due or to become due under such contract, whether during or after such war or emergency . . . hereafter” to eliminate unnecessary words. The words “of any nature” are omitted as surplus. In clause (1), the words “or any department or agency thereof” are omitted as unnecessary. In clause (2), the words “under any renegotiation statute or under any statutory renegotiation article in the contract” are omitted as surplus.

Subsection (e)(1) is substituted for 31:203(4th par.) to eliminate unnecessary words.

In subsection (e)(2), the words “person receiving an amount under an assignment or allotment” are substituted for “assignees, transferees, or allottees” for clarity and consistency. The words “or to others for them” and “with respect to such assignments , transfers, or allotments or the use of such moneys” are omitted as surplus. The words “person making the assignment or allotment” are substituted for “assignors, transferors, or allotters” for clarity and consistency.

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Change Number: DFARS Change 09/16/2024 Effective Date: 09/16/2024

Subpart 232.8 - ASSIGNMENT OF CLAIMS

Subpart 232.8 - ASSIGNMENT OF CLAIMS

232.803 policies..

(b) Only contracts for personal services may prohibit the assignment of claims.

(d) Pursuant to 41 U.S.C. 6305, and in accordance with Presidential delegation dated October 3, 1995, Secretary of Defense delegation dated February 5, 1996, and Under Secretary of Defense (Acquisition and Sustainment) delegation dated February 23, 1996, the Director of Defense Procurement determined on May 10, 1996, that a need exists for DoD to agree not to reduce or set off any money due or to become due under the contract when the proceeds under the contract have been assigned in accordance with the Assignment of Claims provision of the contract. This determination was published in the Federal Register on June 11, 1996, as required by law. Nevertheless, if departments/agencies decide it is in the Government's interest, or if the contracting officer makes a determination in accordance with FAR 32.803(d) concerning a significantly indebted offeror, they may exclude the no-setoff commitment.

232.805 Procedure.

(b) The assignee shall forward—

(i) To the administrative contracting officer (ACO), a true copy of the instrument of assignment and an original and three copies of the notice of assignment. The ACO shall acknowledge receipt by signing and dating all copies of the notice of assignment and shall—

(A) File the true copy of the instrument of assignment and the original of the notice in the contract file;

(B) Forward two copies of the notice to the disbursing officer of the payment office cited in the contract;

(C) Return a copy of the notice to the assignee; and

(D) Advise the contracting officer of the assignment.

(ii) To the surety or sureties, if any, a true copy of the instrument of assignment and an original and three copies of the notice of assignment. The surety shall return three acknowledged copies of the notice to the assignee, who shall forward two copies to the disbursing officer designated in the contract.

(iii) To the disbursing officer of the payment office cited in the contract, a true copy of the instrument of assignment and an original and one copy of the notice of assignment. The disbursing officer shall acknowledge and return to the assignee the copy of the notice and shall file the true copy of the instrument and original notice.

232.806 Contract clauses.

(a)(1) Use the clause at 252.232-7008 , Assignment of Claims (Overseas), instead of the clause at FAR 52.232-23, Assignment of Claims, in solicitations and contracts when contract performance will be in a foreign country.

(2) Use Alternate I with the clause at FAR 52.232-23, Assignment of Claims, unless otherwise authorized under 232.803 (d).

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COMMENTS

  1. PDF Assigning Claims and Contracts in Texas

    Tex. Bus. & Com. Code Ann. § 2.210(a). And in subsection (b), assignments are allowed unless the assignment "would materially change the duty of the other party, or increase materially the burden or risk imposed on him by his contract, or impair materially his chance of obtaining return performance."25.

  2. PDF Assignability of Commercial Contracts (TX)

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  3. BUSINESS AND COMMERCE CODE

    Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1. Sec. 23.02. NATURE AND EFFECT OF ASSIGNMENT. (a) A debtor may assign his real and personal estate under this chapter to an assignee for the benefit of the debtor's creditors. (b) An assigning debtor shall provide in the assignment for distribution of all his real and personal estate to each ...

  4. Subpart 32.8

    32.802 Conditions. Under the Assignment of Claims Act, a contractor may assign moneys due or to become due under a contract if all the following conditions are met: (a) The contract specifies payments aggregating $1,000 or more. (b) The assignment is made to a bank, trust company, or other financing institution, including any Federal lending ...

  5. Texas Tort Claims Act Basics

    Tort Claims Act Basics 3 Claims Act under another section, such as Section 101.021, before relying on Section 101.0215. Bellnoa v. City of Austin, 894 S.W.2d 821, 826 (Tex. App.—Austin 1995, no writ); City of San Antonio v. Winkenhower, 875 S.W.2d 388, 391 (Tex. App.— San Antonio 1994, writ denied). Further, Section

  6. Assignees May Sue for Breach of Contract Under Texas Law

    The original parties to the contract are not the only parties who can sue on a contract. Assignees and third-party beneficiaries may also sue. This article deals with the rights of assignees. Assignments are governed by general contract law. Cadle Co. v. Henderson, 982 S.W.2d 543, 546 (Tex. App.—San Antonio 1998, no pet.).

  7. Contracting Concepts: Assignment of Claims

    Under the Assignment of Claims Act, a contractor may assign moneys due or meant to become due under a contract meeting all of the following conditions: (a) Contract payments are equal to or more than $1,000. (b) The assignment is made to a bank, trust company, or other financing institution. (c) The contract does not prohibit the assignment.

  8. 32.802 Conditions.

    32.802 Conditions. Under the Assignment of Claims Act, a contractor may assign moneys due or to become due under a contract if all the following conditions are met: (a) The contract specifies payments aggregating $1,000 or more. (b) The assignment is made to a bank, trust company, or other financing institution, including any Federal lending ...

  9. 48 CFR Part 32 Subpart 32.8 -- Assignment of Claims

    32.806 Contract clauses. (a) (1) The contracting officer shall insert the clause at 52.232-23, Assignment of Claims, in solicitations and contracts expected to exceed the micro-purchase threshold, unless the contract will prohibit the assignment of claims (see 32.803 (b)). The use of the clause is not required for purchase orders.

  10. PDF Subpart 32.8—Assignment of Claims

    Subpart 32.8—Assignment of Claims 32.800 Scope of subpart. This subpart prescribes policies and procedures for the assignment of claims under the Assignment of Claims Act of 1940, as amended, 31 U.S.C. 3727 (hereafter referred to as the Act). [48 FR 42328, Sept. 19, 1983, as amended at 51 FR 2665, Jan. 17, 1986] 32.801 Definitions.

  11. BUSINESS ORGANIZATIONS CODE

    Sec. 101.453. DEMAND. (a) A member may not institute a derivative proceeding until the 91st day after the date a written demand is filed with the limited liability company stating with particularity the act, omission, or other matter that is the subject of the claim or challenge and requesting that the limited liability company take suitable ...

  12. PDF The Texas Prompt Payment of Claims Statute and Its Application to The

    An insurer who wrongfully denies payment of a claim will be liable for the eighteen (18) percent penalty assessed by Section 542.060. The penalty starts to accrue sixty (60) days after the insurer receives all required information to investigate the claim. This penalty is cumulative of other available remedies.

  13. CIVIL PRACTICE AND REMEDIES CODE

    (b) A claimant must bring a health care liability claim not later than 10 years after the date of the act or omission that gives rise to the claim. This subsection is intended as a statute of repose so that all claims must be brought within 10 years or they are time barred. Added by Acts 2003, 78th Leg., ch. 204, Sec. 10.01, eff. Sept. 1, 2003.

  14. 52.232-23 Assignment of Claims.

    As prescribed in 32.806 (a) (1), insert the following clause: Assignment of Claims (May 2014) (a) The Contractor, under the Assignment of Claims Act, as amended, 31 U.S.C.3727, 41 U.S.C.6305 (hereafter referred to as "the Act"), may assign its rights to be paid amounts due or to become due as a result of the performance of this contract to a ...

  15. 31 U.S. Code § 3727

    31 U.S. Code § 3727 - Assignments of claims. a transfer or assignment of any part of a claim against the United States Government or of an interest in the claim; or. the authorization to receive payment for any part of the claim. An assignment may be made only after a claim is allowed, the amount of the claim is decided, and a warrant for ...

  16. 52.232-23 Assignment of Claims.

    52.232-23 Assignment of Claims. (a) The Contractor, under the Assignment of Claims Act, as amended, 31 U.S.C.3727, 41 U.S.C.6305 (hereafter referred to as "the Act"), may assign its rights to be paid amounts due or to become due as a result of the performance of this contract to a bank, trust company, or other financing institution, including ...

  17. Can causes of actions be assigned in Texas?

    The law generally prohibits the assignment of a claim only when the particular assignment presents specific dangers, such as jury confusion, the multiplication of disputes, and potential prejudice to the parties. See Gandy, 925 S.W.2d at 707-11. Unless the assignment of a bill-of-review claim like HSBC's would present similar dangers, the ...

  18. PDF UNDERSTANDING THE TEXAS TORT CLAIMS ACT

    In 1969, the Texas Legislature passed the Texas Tort Claims Act (Act).1 In doing so, the legislature joined a national judicial and legislative trend moving away from absolute immunity of the government for liability in tort that had been growing over the previous two decades2 and waived sovereign.

  19. Chapter 542. Processing and Settlement of Claims

    Added by Acts 2003, 78th Leg., ch. 1274, Sec. 2, eff. April 1, 2005. Sec. 542.003. UNFAIR CLAIM SETTLEMENT PRACTICES PROHIBITED. (a) An insurer engaging in business in this state may not engage in an unfair claim settlement practice. (b) Any of the following acts by an insurer constitutes unfair claim settlement practices:

  20. PDF Amendment to the Assignment of Claims Act of 1940

    Dallas, Texas, June 8,1951. AMENDMENT TO THE ASSIGNMENT OF CLAIMS ACT OF 1940 To all Financing Institutions in the Eleventh Federal Reserve District: On May 15,1951, an amendment to the Assignment of Claims Act of 1940 became law. Its purpose is to facilitate the financing of defense contracts by banks and other financing institutions.

  21. 32.800 Scope of subpart.

    32.800 Scope of subpart. This subpart prescribes policies and procedures for the assignment of claims under the Assignment of Claims Act of1940, as amended, ( 31 U.S.C.3727, 41 U.S.C. 6305) (hereafter referred to as "the Act"). Parent topic: Subpart 32.8 - Assignment of Claims.

  22. Subpart 232.8

    232.806 Contract clauses. (a) (1) Use the clause at 252.232-7008, Assignment of Claims (Overseas), instead of the clause at FAR 52.232-23, Assignment of Claims, in solicitations and contracts when contract performance will be in a foreign country. (2) Use Alternate I with the clause at FAR 52.232-23, Assignment of Claims, unless otherwise ...