Section 84.1 — Bankruptcy and Insolvency Act: Assignment of agreements

On application by a trustee and on notice to every party to an agreement, a court may make an order assigning the rights and obligations of a bankrupt under the agreement to any person who is specified by the court and agrees to the assignment. In the case of an individual, they may not make an application under subsection (1) unless they are carrying on a business; and only rights and obligations in relation to the business may be assigned. Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under an agreement entered into on or after the date of the bankruptcy; an eligible financial contract; or a collective agreement. In deciding whether to make the order, the court is to consider, among other things, whether the person to whom the rights and obligations are to be assigned is able to perform the obligations; and whether it is appropriate to assign the rights and obligations to that person. The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the person’s bankruptcy, insolvency or failure to perform a non-monetary obligation — will be remedied on or before the day fixed by the court. The applicant is to send a copy of the order to every party to the agreement.