Contract Assignment Agreement Without Signing
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FAQ
An assignment of contract occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee"). Ideally, the assignor wants the assignee to step into his shoes and assume all of his contractual obligations and rights.
Unlike a Novation where consent of both the lessor and lesse is required for the third party to assume all obligations and liabilities of the original lessee, an assignment does not always need the consent of all parties.
The one who makes the assignment is both an obligee and a transferor. The assignee acquires the right to receive the contractual obligations of the promisor, who is referred to as the obligor (see Figure 14.1 "Assignment of Rights").
The initial contract must provide for the possibility of assignment by one of the initial contracting parties. The assignor must agree to assign their rights and duties under the contract to the assignee. The assignee must agree to accept, or "assume," those contractual rights and duties.
The burden of a contract can never be assigned without the consent of the other party to the contract in which event such consent will give rise to a novation."
