A written contract assignment is used to legally transfer contractual rights from one party to another.
- Transferring your contractual rights and duties to a third party.
- Accepting an offer for someone else’s contractual rights and duties.
If you want to transfer your rights and obligations under a contract to another business or individual, you usually need a written contract assignment. A contract assignment effectively switches a party to an agreement out for another, typically a person who was not involved in the original agreement. It is common to assign several types of contracts. For example, banks often buy and sell mortgages from one another. In these transactions, a mortgage is assigned to another lender and the borrower is simply notified that he must start sending his payments to a new lender.
Mortgage assignments usually do not require the consent of the other parties to the agreement, but most other contracts do require a written contract assignment in order to change hands. If, for example, a borrower finds that he is no longer able to pay the terms of a loan and is able to find a third party to step in and take on the obligation, the lender will have to consent and a written contract assignment will have to follow.
American law values freedom of contract, and as a result most contracts can be assigned to third parties. While parties can always agree to not allow assignment and include non-assignment or rescission clauses in their foundational agreements, contract assignment is a very common practice. If you find yourself wanting to assign a contract you’ve signed, use this customizable contract assignment to develop a legal document that meets your requirements. Likewise, if someone has offered to transfer their rights under a contract to you, use this template to create a framework for the agreement.