Section 128

The assignment of contingent contracts is governed by the general principles of assignment under the Indian Contract Act, 1872. According to Section 37, the beneficiary in a contract may assign his right under the contract, unless the contract or the circumstances show that the rights are not assignable. For contingent contracts, the assignment is subject to the condition that the event on which the contract is contingent must happen. If the event becomes impossible, the assignment is also void. The courts have held that the assignee of a contingent contract takes the contract subject to all its terms and conditions, including the contingency. Thus, the assignee's rights are contingent upon the occurrence of the specified event.