A contract assignment agreement may be formed in situations involving a contract assignment. An assignment is where the recipient of products, services, or other rights transfers (assigns) their rights to another party. The party transferring their rights is known as the assignor, while the party performing the services is called the obligor. The party receiving the transferred rights is called the assignee.
Contract assignments are often utilized in situations involving similar to beneficiary and gift-giving situations. However, there is often a strong business or commercial component to contract assignments (such as those projects involving commercial building and contracting).
A contract assignment should contain:
- Names of the parties involved
- Descriptions of the rights or contract benefits being assigned
- When the assignment takes effect, and whether or not it expires
- Provisions regarding legal action if a violation or breach of contract should occur
Most jurisdictions don’t actually require a contract assignment to be in writing. Of course, it’s always best to put the agreement in writing, in order to create a record of the transaction in case there are any issues in the future.
Some common legal issues involving contract assignments include:
- Failure to actually transfer the rights to the assignee
- Refusal to cooperate with the contract assignment terms
- Use of fraud, misrepresentation, or coercion when dealing with assignment agreement documents
- Mistakes or errors regarding definitions of the assignment subject
Disputes often require legal action in a court of law to resolve the legal issues. This can result in a monetary damages award to cover losses caused by a breach of contract. Or, alternatively, some courts may enforce other remedies such as a cancellation or rewriting of the contract.
Contract agreements often require much attention to detail, as well as foresight for anticipating future events. It’s in your best interests to hire a business lawyer if you need help with any contract matters. Your attorney can help you with your documents, and can also represent you if you ever need to file a claim in court for damages.