Kentucky Putting It All Together - Anti-Assignment and Anti-Delegation Clauses

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US-ND0314
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Description

This form brings together several boilerplate contract clauses that work together to outline requirements or otherwise restrict any assignment of rights or delegation of performance under a contract.

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FAQ

A Standard Clause, also known as an anti-assignment and anti-delegation clause, that provides for a contractual limitation on the assignability of contractual rights and the delegation of contractual duties.

Anti-assignment clauses are insurance policy provisions that require the insurance company's consent to any assignment or transfer of rights of the policy and are generally enforceable before a loss occurs.

The absence of an assignment clause in an agreement would often mean that a party is allowed to assign its benefit under the contract without the consent of the other party. Where assignment clauses require consent of the other party, this consent should not be unreasonably withheld.

Under contract law, transfers of ?rights?, such as a plaintiff's ?right? to receive future periodic payments, are ?assigned?, whereas ?duties?, such as a defendant's obligation (duty) to make future periodic payments, are ?delegated.?

This may read something like this: ?Neither party may assign or delegate this agreement or its rights or obligations under this agreement without the prior written consent of the other party, whose consent shall not be unreasonably withheld or delayed.

The following is an example of a non-assignment provision encompassing the right to payment: ?This contract cannot be assigned to anyone without the written consent of both parties. No party to this contract has the power to sell, mortgage, encumber, or anticipate the future payments by assignment or otherwise.?

For value received, I, _______________________________ as assignor, herby transfer and assign to __________________________________________, as assignee, his heirs and assigns, all rights and interest in that contract between ________________________________________, seller, and assignor ...

Examples of assignment clauses include: Example 1. A business closing or a change of control occurs. Example 2. New services providers taking over existing customer contracts. Example 3. Unique real estate obligations transferring to a new property owner as a condition of sale. Example 4.

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Kentucky Putting It All Together - Anti-Assignment and Anti-Delegation Clauses