Assignment of a Contract (Contract) - The Business Professor.
Under a legally enforceable contract, an assignment is the transfer of rights to receive a specific performance in return.
An Assignment Agreement, sometimes called a Contract Assignment, allows you to assign your contractual rights and responsibilities to another party. For example, if you're a contractor who needs help completing a job, you can assign tasks and entitlements to a subcontractor, as long as the original contract doesn't forbid the assignment of these rights and duties.
An assignment agreement transfers and assigns one party's property rights to another. In real estate, an assignment agreement will be used by a lessee to assign the remaining term of a lease to a subtenant. Assignment agreements are also frequently found in employment agreements when companies require employees to assign all inventions conceived and developed in the course of their employment.
Contractual Provision Limiting or Prohibiting Assignment Generally, provisions in bilateral contracts that forbid or restrict assignment of the contract without the consent of the obligor are valid and enforceable, even when there is statutory authorization for the assignment.
The Concept of a Contract Assignment. Contracts create rights and duties. By an assignment The passing or delivering by one person to another of the right to a contract benefit., an obligee One to whom an obligation is owed. (one who has the right to receive a contract benefit) transfers a right to receive a contract benefit owed by the obligor One who owes an obligation.
Any contract may be assigned with permission of the obligor. Personal service contracts cannot be assigned without the permission of the parties, such as a contract between an employee and an employer. A contract may prohibit the assignment of any rights arising under the contract.
Assignment of Commercial Contractsby Practical Law Canada Commercial TransactionsRelated ContentThis Practice Note examines the law relating to the transferability of commercial contracts, including a party's legal ability to assign its rights and delegate its performance obligations under a contract that is silent on transferability, and the enforceability of contractual anti-assignment and.