Same - Assignment By Operation Of Law

198. Rules of law operate to transfer rights and liabilities arising out of a contract, under certain circumstances and to a certain extent, in the following cases:

(a) Upon the transfer of an interest in land,

(b) Upon a woman's marriage.

(c) By death.

(d) By bankruptcy.

We have thus far dealt with the manner in which the parties to a contract may by their own acts assign to others the benefits or liabilities of the contract. It remains now to show how these rights and liabilities may pass by operation of law.

Same - Assignment Of Obligations On Transfer Of Interests In Land

199. If a person, by purchase or lease, acquires an interest in land from another, on terms which bind them by contractual obligations in respect of their several interests, the assignment by either party of his interest will operate as a transfer of these obligations to the assignee as follows:

92 2 Norton, Bills & N. (3d Ed.) 327.

93 Edge v. Bumford, 31 L. J. Ch. 805; Central Trust Co. v. Bank, 101 U. S. 68, 25 L. Ed. 876; Osgood's Adm'rs v. Artt (C. C.) 17 Fed. 575; Lancaster Nat. Bank v. Taylor, 100 Mass. 18, 1 Am. Rep. 71, 97 Am. Dec. 70; Goshen Nat. Bank v. Bingham, 118 N. Y. 349, 23 N. E. 180, 7 L. R. A. 595, 16 Am. St Rep. 765; Norton, Bills & N. (3d Ed.) 196, 200. See "Bills and Notes;' Dec. Dig. (Key-No.) §§ S10S1S; Cent. Dig. §§ 742-750.

(a) Covenants affecting leasehold interests,

(1) If they touch and concern the thing demised, and relate to something which was in existence at the time of the lease, pass to the assignee, though not expressed to have been made with the lessee "and his assigns."

(2) If they relate to something not in existence at the time of the lease, they pass to the assignee, if expressed as made with the lessee "and assigns."

(3) In no case do merely personal or collateral covenants between the landlord and lessee pass to the latter's assignee.

(4) The reversioner or landlord does not at common law, by assigning his interest in the land, convey his rights and liabilities to the assignee, but this is very generally changed by statute.

(b) Covenants affecting freehold interests,

(1) If made to the owner of the land, and for his benefit, pass to his assignees, provided they touch and concern the land, and are not merely personal.

(2) If made by the owner, restricting his enjoyment of the land, they do not, at common law, bind his assignees, except in case of well-known interests, such as easements, recognized by law. In equity, however, it is otherwise in case of certain covenants of which the assignee had notice at the time of his purchase.84