D is corrent. In general, a party’s rights in a contract are assignable without the consent of the other parties. However, the following are situations in which this general rule does not apply and consent of the other parties would be required for a valid transfer to occur: (1) the contract involves personal services, credit, trust or confidence, (2) a provision of the contract or statute prohibits assignment, and (3) the assignment would materially change the risk or obligations of the other party. Since the assignment by a patent holder of the right to receive royalties would not alter the rights of the other parties to the contract, a valid transfer could be made without the consent of these parties.
A is incorrect. This assignment would materially change the risk of the other party involved and would require the other party’s consent prior to a valid transfer.
A is incorrect. This assignment would materially change the risk of the other party involved and would require the other party’s consent prior to a valid transfer.
C is incorrect. This assignment involves a personal service contract. Contracts involving personal services, credit, trust, or confidence is not assignable.
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