John Jarvis KC and Gretel Scott write Spotlight article for Journal of International Banking & Financial Law (JIBFL)
John Jarvis KC and Gretel Scott have written a Spotlight article for the Journal of International Banking & Financial Law (JIBFL) titled ‘Legal assignments: what does “under the hand of the assignor” mean for companies?’.
The article considers the important issue of whether companies should avoid signing assignments under powers of attorney (or through agents generally) due to the risk that, in light of Frischmann v Vaxeal Holdings SA [2023] EWHC 2698 (Ch) (3 November 2023) and other cases, they do not take effect as valid legal assignments under s.136 of the Law of Property Act 1925.
John Jarvis KC and Gretel Scott conclude that “under the hand of the assignor” in s.136 means “signed by the assignor” and this should include an agent or donee under a power of attorney signing on behalf of the assignor, whether the assignor is an individual or a company. They accept, however, that there are arguments against this view. Corporates may therefore choose to take a more risk-averse approach such as stating expressly in the contract what “under the hand of the assignor” means, or expressly authorising particular teams to sign on their behalf.
The article was published in the April 2024 edition of the Journal of International Banking & Financial Law.
Click here to read the article in full.
