Business Law 9th Edition by Henry Cheeseman

Exercise 3

Assignment William John Cunningham, a professional basketball player, entered into a contract with Southern Sports Corporation, which owned the Carolina Cougars, a professional basketball team. The contract provided that Cunningham was to play basketball for the Cougars for a three-year period. The contract contained a provision that it could not be assigned to any other professional basketball franchise without Cunningham's approval. Subsequently, Southern Sports Corporation sold its assets, including its franchise and Cunningham's contract, to the Munchak Corporation (Munchak). There was no change in the location of the Cougars after the purchase. When Cunningham refused to play for the new owners, Munchak sued to enforce Cunningham's contract. Is Cunningham's contract assignable to the new owner? Munchak Corporation v. Cunningham , 457 F.2d 721, 1972 U.S. App. Lexis 10272 (United States Court of Appeals for the Fourth Circuit)