Can informal talks stand in for a clear and executed assignment clause in a contract?

June 01, 2017
A conditional, incomplete or vague assignment clause will not be enforced by the courts even between a subsidiary and parent company. A parent company that seeks to rely on the assignment of a contract cannot base its legal rights on the informalities that exist between it and the subsidiary. See instant case of KJM Leasing Ltd. v. Toronto-Dominion Bank 1989 CanLII 4646 (SK QB).