8.9A-405 - A-405. Modification of assigned contract.
§ 8.9A-405. Modification of assigned contract.
(a) Effect of modification on assignee. A modification of or substitution foran assigned contract is effective against an assignee if made in good faith.The assignee acquires corresponding rights under the modified or substitutedcontract. The assignment may provide that the modification or substitution isa breach of contract by the assignor. This subsection is subject tosubsections (b) through (d).
(b) Applicability of subsection (a). Subsection (a) applies to the extentthat:
(1) the right to payment or a part thereof under an assigned contract has notbeen fully earned by performance; or
(2) the right to payment or a part thereof has been fully earned byperformance and the account debtor has not received notification of theassignment under § 8.9A-406 (a).
(c) Rule for individual under other law. This section is subject to law otherthan this title which establishes a different rule for an account debtor whois an individual and who incurred the obligation primarily for personal,family, or household purposes.
(d) Inapplicability to health-care-insurance receivable. This section doesnot apply to an assignment of a health-care-insurance receivable.
(1964, c. 219, § 8.9-318; 1973, c. 509; 2000, c. 1007.)