What is Assignment of Contract Drafting?
An assignment of contract is when contractual rights and duties are transferred from one party (an assignor) to another, an assignee.
It’s important to clarify how the arrangement works and define terms to govern the parties’ working relationship.
If you need to draft an assignment of contract, you should read the rest of this article for clarity. We’ll explore the key terms that should be included in the agreement, how to draft it, and how a qualified lawyer can assist you with the contract drafting process.
What are Key Terms in an Assignment of Contract?
An assignment of contract usually contains core information such as the following:
- Parties. Include the full legal names and addresses of both parties, the assignor and assignee.
- Original agreement. The original agreement must be described. Include its effective dates and what is being transferred, such as property or rights.
- Effective date. State the date on which the transfer occurs.
- Consideration. Explain what payment or value is provided for the transfer.
- Consent. State if the transfer must be approved before it can go through.
- Rights. Make sure the rights being transferred are detailed, such as payment or lease rights.
- Release. State if the assignor is released from future obligations.
- Assignor representations. Include statements that confirm the assignor has the right to assign what is being transferred to the other party.
What are Tips for Drafting an Assignment of Contract?
When drafting an assignment of contract, bear the following in mind so that your final contract is clear and detailed.
Provide Background
You should provide background for the contract by identifying the original contract. State when the contract was concluded and what parties were involved in the agreement. Here, it’s also useful to state that the assignor wants to transfer specific rights to the assignee.
Clarify Duties
You want to be clear about what rights or benefits the assignor keeps or transfers to the assignee. Clarify all the rights and if the original assignor remains on the hook if the new party doesn’t fulfill their duties.
Include a Notice Method
Notice must be given to the other party that the assignment has taken place. Ensure that you’ve clearly stipulated how notice is provided, such as via email or certified mail.
Specify Consideration
You must clearly state if the consideration includes payment, no consideration, or if consideration will be part of another transaction, such as a business sale or acquisition of assets. Being clear and specific will prevent disputes over what is being provided.
Consider Legal Requirements
How you draft your assignment of contract is determined by your jurisdiction requirements and your original contract. This is why it’s useful to consult a qualified lawyer for assistance with the contract drafting process.
How Does a Lawyer Help You Draft an Assignment of Contract?
If you’re unsure of how to draft an assignment of contract, you should hire a qualified, reputable lawyer. They’ll help you with the drafting process, giving you peace of mind that you haven’t forgotten anything important.
A lawyer will assist you by:
- Reviewing your original contract to determine if the assignment is permitted.
- Identifying what is being transferred, such as benefits or claims.
- Determining if the assignment is appropriate or if you need something else, such as a novation.
- Drafting the assignment clause to ensure that the transfer is legal and clear to prevent disputes.
- Checking if there are any restrictions or conditions in the original agreement that could influence the assignment.
- Protecting the parties against future legal disputes by providing clear, detailed information.
- Preparing the document for execution. For example, they’ll ensure the document contains both parties’ signatures.
- Advising you of the commercial and legal consequences of your assignment prior to you signing it.
- Reviewing your assignment of contract if you’ve already drafted it, giving you peace of mind that it’s clear and legally sound.
Where to Find and Hire a Lawyer for Assignment of Contract Drafting
If you need to hire a lawyer to draft your assignment of contract, you don’t have to waste time phoning traditional law firms in your area or calling people you know for lawyer recommendations.
Using an online legal platform makes the search for a lawyer a stress-free experience. You’ll connect with reputable and skilled lawyers who have years of experience in contract drafting and review.
ContractsCounsel is one of the largest online legal marketplaces that gives you access to a curated network of lawyers, all of whom have been vetted on the platform. It gives you information about the lawyers you can hire, preventing you from having to research them yourself.
If you need to hire a lawyer to draft your assignment of contract, here are the easy steps to follow online:
- Visit the ContractsCounsel marketplace, where it’s free to post a project.
- Select ‘One-time project’ and ‘Create or update contract.’ Alternatively, if you want a lawyer to review your document, select ‘Contract review.’
- Post your project. Include some details of what you need to match with suitable lawyers.
- Wait for bids. Instead of searching for lawyers, lawyers on the platform will send you multiple bids to work on your project.
- Review the lawyers’ profiles. The platform provides information about the lawyers, such as their location, credentials, field of expertise, years of experience, and client ratings for projects they’ve completed on the platform.
- Select a lawyer and hire them to draft your assignment of contract for a flat fee.