An assignment does not relieve the assignor of any obligation under the contract. An assignor continues to be bound by the obligations of the original contract unless the other party to the contract releases him. In this form the assignee specifically promises the assignor that he/she will perform the obligations of the contract being assigned and promises to indemnify assignor if assignee fails to perform.
Title: Exploring the New Mexico Assignment of Contract with Covenant of Assignee to Perform Introduction: A commonly used legal document in the realm of contracts, the New Mexico Assignment of Contract with Covenant of Assignee to Perform establishes an agreement between the original contracting parties and a subsequent assignee who takes on the rights and obligations of the contract. This comprehensive article aims to delve into the intricacies of this legal instrument, its significance, and the potential types available within the New Mexico jurisdiction. 1. Understanding the New Mexico Assignment of Contract: In New Mexico, an assignment of contract occurs when one party (the assignor) transfers their contractual rights and duties to another party (the assignee). This allows for the assignee to fulfill the original contract terms and obligations instead of the assignor. Importantly, to ensure a smooth transition, the New Mexico Assignment of Contract with Covenant of Assignee to Perform also outlines the assignee's assurance of fulfilling and completing the contract as agreed. 2. Key Components of the Assignment of Contract with Covenant of Assignee to Perform: a. Identification: The document should clearly identify the parties involved, including the assignor, the assignee, and the original contract details (such as contract number, execution date, parties' names, etc.). b. Covenant of Assignee: This clause specifically includes the assignee's promise to perform all obligations outlined in the original contract, thereby maintaining the integrity and continuity of the agreement. c. Notice to Counterparty: This provision ensures that the counterparty (the non-assigning party) is informed about the assignment and recognizes the assignee's role as the new contracting party. d. Governing Law: Since the document pertains to New Mexico, it should specify that the contract is subject to New Mexico state laws. e. Representation and Warranties: Here, the assignor confirms that they have the right to assign the contract, and there are no existing claims or liens affecting the contract. f. Indemnification: This section details the assignor's agreement to protect, defend, and indemnify the assignee from any future claims related to the assigned contract. 3. Potential Types of New Mexico Assignment of Contract: a. Assignment of Real Estate Contract: This variant enables the transfer of rights and duties associated with a real estate contract to a new assignee. It is crucial when parties wish to transfer or assign real estate interests. b. Assignment of Business Contract: Here, the original parties assign a business contract, including rights and duties, to a new assignee who assumes the same contractual responsibilities. Conclusion: In summary, the New Mexico Assignment of Contract with Covenant of Assignee to Perform is an important legal tool allowing parties to transfer contractual rights and obligations to a new assignee while ensuring the continuity of the original agreement. By outlining the key aspects and various types of assignments, this article provides valuable insights into understanding and utilizing this particular legal instrument effectively.
