Contract Assignment Agreement

What is a contract assignment agreement?

A contract assignment agreement is a legally binding document that allows one party to transfer their rights and obligations under an existing contract to another party. The document’s template usually outlines the following terms and conditions for the assignment:

• full details of the parties involved;
• scope of transferred duties and obligations;
• detailed information about the original agreement being assigned;
• parties’ signatures.

A contract assignment agreement template is commonly used in business transactions where one party no longer wishes to continue performance of the original agreement. Therefore, assignment of rights and obligations is common for asset sales, service agreements, real estate, and intellectual property arrangements.

The parties involved in an assignment contract are the assignor and assignee. The assignor is the original party to the existing agreement who wishes to transfer their rights and obligations. The assignee is the party who accepts the rights and obligations being transferred. Both parties could be individuals, legal entities, or businesses.

Assignment of rights and responsibilities under certain types of contracts may not be possible. For instance:

• child alimony support agreements;
• personal services contracts that are closely related to the unique skills, talents, or reputation of a party (e.g., music recording agreement); and
• employment contracts;

How to draft a contract assignment agreement?

A well-drafted contract assignment agreement should clearly outline all the critical details to avoid ambiguity or legal disputes. Below we prepared a list of all essential elements a solid agreement template should have:

Details of the Parties

The text of an assignment agreement contract shall include the full legal names and addresses of both parties.

At the end of the contract, parties have to put their signatures to make a template a legally binding document.

Details of the Original Agreement

Another important element of a contract assignment agreement sample is the details of the original agreement being assigned. Those details shall include:

• original’s contract title or name;
• date of signing;
• brief description;
• name of the other party to the original contract.

It is also common to attach the text of the original contract in a separate exhibit to the present assignment contract for the reference.

Scope of Assignment

A contract assignment agreement template could be of two types:

• full assignment (i.e., when the assignor transfers the whole set of rights and obligations under the original agreement); and
• partial assignment (i.e., when the assignor transfers either all rights or all obligations under the original agreement).

A full assignment is the most common type and is being widely used to transfer all rights, interest, title, and obligations under various types of contracts, including leases, licenses, sale-purchase agreements, etc.

Consent from the Third Party

Prior to entering an assignment of contract agreement, the parties have to carefully check the text of the original agreement:

• whether the original agreement allows the assignment? Some documents may include a non-assignment clause, for instance.
• whether the prior written consent from another party to the original agreement is required.
• whether the other party to the original agreement shall also sign an assignment contract.

Failure to meet either of the obligations stated above may result in a contract assignment agreement being invalid or not enforceable in a court. If this is the case, the assignor remains fully responsible for the performance of the original agreement.

How to create a customized legal template at Faster Draft?

To personalize your legal document template, follow a few easy steps below:

1. Click the button “Create Document.”
2. Answer simple questions in the form.
3. Select a document’s format—assignment agreement PDF or Word.
4. Make a payment.
5. E-sign, download, print, and use a customized contract agreement template in minutes.