Delegate Your Duties Stress-Free With an Assignment Agreement

Creating an Assignment Agreement Without a Lawyer 

If you want to delegate your contractual duties to another party and are looking for an adequate contract to regulate the matter, DoNotPay has got you covered! We can help you create legal documents without breaking the bank! 

In this detailed guide, we will help you understand what an assignment agreement is, how it works, and how to write any contract effortlessly. 

What Is an Assignment Agreement?

An assignment agreement, also known as contract assignment, allows one party to pass their contractual obligations to another party while protecting their respective legal rights. This document is helpful in business deals or intellectual property arrangements when specific duties get assigned to either a subsidiary or a successor.

The compensation provided for the assigned duties can include the following: 

  • Money
  • Forgiveness of debt
  • Transfer of an asset

Concerned Parties in the Agreement

There are two parties involved in the assignment agreement:

  1. The assignor is the person who is transferring their duties and obligations to the third party
  2. The assignee is the person who is accepting the duties and obligations of the assigner

The agreement can also involve the written consent of the party that entered into the original contract with the assignor.

Are There Any Prohibitions When Creating an Assignment Agreement?

Several clauses prohibit an assignment agreement:

  • If the contract has an anti-assignment clause, it makes the assignment agreement void
  • You cannot transfer your obligations to a third party if the original contract explicitly denies you the right to do so without the written consent of all concerned parties
  • If the assignment agreement changes the nature, increases the risks, or decreases the value of the original contract, you can't enter into an assignment contract
  • The same holds in case the assignment violates the law or public policy in any way

When the assignment agreement is not possible, the assignor can delegate a certain portion of the duties to the assignee. It will not be legally binding, and obligations cannot be fully omitted. 

When Do You Need an Assignment Agreement?

If you’re creating a business contract, adding the assignment clause can be beneficial in the following situations:

  • Assignment of intellectual property, including trademark, patent, copyright, or trade secrets
  • During the sale, acquisition, or merger of a business
  • In an employment or work for hire agreement

It is advisable to consult a lawyer before creating the contract to protect your legal rights.

How Do Assignment Agreements Work?

There are four steps to an assignment contract:

  1. Go through the document to ensure there is no anti-assignment clause, which can be a hindrance
  2. Create an assignment contract to transfer your rights and obligations
  3. Give notice to the original parties, relieving yourself of any liabilities under the contract
  4. Get a notary to notarize the documents confirming all parties are in agreement

Please note the duties and obligations of specific people cannot be assigned to another party.

Essential Elements To Add to Your Assignment Agreement

While you will find numerous contract templates online, most of them are unreliable, outdated, and grammatically incorrect. You can go through different samples to get a basic idea of what your agreement should look like and create one based on your requirements and the current state laws.

Here are a few main elements you should add:

  • Name of the assignor and the assignee
  • Names of the parties mentioned in the original contract
  • Contents of the original contract, including the duties transferred to the assignee
  • Consent of the other party in writing (if required)
  • The effective date of the agreement
  • Governing state laws
  • Severability clause in the case of a lawsuit
  • Acceptance and signature of all parties involved

Is an Assignment Agreement Legally Binding? What Happens if a Party Violates the Contract?

By default, an assignment agreement is legally binding and can only be waived under special circumstances. If the contract is violated, it is the duty of the guilty party to remedy the breach. The resolution can involve compensatory damages, cancellation, or restitution. If there is a dispute over the terms of the contract, the affected party can file a lawsuit. 

DoNotPay Can Draw Up Legal Documents for You

Why waste your hard-earned money on expensive lawyers when can draft legal documents for you? For a low monthly fee, we create a multitude of contracts and agreements customized according to your specific requirements.

DoNotPay can draw up various documents for you, such as:

Real EstateBusinessOther
  • Quitclaim deed
  • Estoppel certificate
  • Intent to purchase real estate
  • Lease agreement

To generate any of the above, follow these quick instructions:

  1. Enter the name of the document you want to draft
  2. Answer a few questions
  3. Print the copy and sign it

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