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An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract.
An assignment agreement should include the:Name of the party transferring their contractual duties.Name of the party receiving the contractual obligations and rights.Third-party, or obligor, to the original contract.Name of the actual contract, along with the expiration date.More items...
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.
An assignment of contract involves transferring a real estate contract from an original party (also known as the real estate wholesaler or assignor) to a new party (also known as the assignee). It is also referred to as an Assignment of Real Estate Purchase and Sale agreement.
In a contract, there are two parties to the agreement, X and Y. The parties may agree to let X assign X's rights to a third party. Once the third party enters the picture, each party has a special name. For instance, suppose X, a seller of bookmarks, contracts with Y, a purchaser of bookmarks.