Last updated January 30, 2024
An Assignment Agreement is also known as a:
- Simple asset transfer agreement
- Property transfer contract
- Transfer of ownership contract
What is an Assignment document?
An Assignment is a document that is a document that transfers the ownership of a contract or property from one party to another (i.e., from an assignor to an assignee). With an Assignment, the rights, responsibilities, pending interest, and benefits of a contract or property move from the original owner to a new party.
What does assign mean in legal terms?
In legal terms, to assign is to transfer. Assigning a contract or property means to give, sell, or otherwise transfer rights and property held by one person to another.
What is the difference between assignment and transfer?
The term assignment describes the transfer of rights between an assignor and assignee. People often use Assignments to transfer rights related to contracts and real estate.
A transfer, on the other hand, arranges for something to be controlled by another individual. A transfer removes or transmits property from one person or place to another. A transfer arranges for something to be controlled by another person.
While an Assignment is, essentially, a transfer of rights, not every transfer is an assignment. The intention of the assignor differentiates an Assignment from other types of transfers (such as a sublease).
How do I get an Assignment contract?
To create an Assignment for your contract, you must first examine the original contract for any clauses or language that might restrict or prohibit the Assignment. If this is the case, you might not be able to assign the contract unless all parties consent.
Next, consider if an Assignment is appropriate and legally enforceable. When it comes to Assignments, there are typically three circumstances where a court will not enforce the document:
- If the contract contains clauses prohibiting the Assignment
- If the Assignment changes the expectations under the contract, such as increasing the risks or decreasing the values or returns for the assignor
- The Assignment is illegal (some laws or public policies prohibit certain Assignments)
Once you have determined that you can assign the contract, use LawDepot’s Assignment template to prepare your document. Our questionnaire prompts you to answer a series of questions to customize your Assignment to meet your specific needs.
If you're assigning a contract, provide notice to the other parties in the contract (also known as obligators).
What can I transfer with an Assignment?
You can transfer almost anything you have ownership over using an Assignment. You can customize LawDepot’s Assignment to act as a property transfer agreement, lease takeover contract, land transfer contract, intellectual property transfer, or vehicle ownership transfer agreement. The template is customizable for a variety of simple transfer agreements.
However, you cannot assign a contract if it contains clauses or language that prohibit assignment to another party. In some cases, the original contract may state that you need to obtain written permission from the obligator (the original party in the contract).
Your original contract may have terms regarding the transfer of ownership. Check the document to see if there is a clause where you can still be held liable for the original contract after assigning it to a new party. If this is the case, you can ask the original party in the contract to sign a Release/Waiver Agreement to ensure you are no longer liable.
How does an Assignment Agreement work?
If you are selling personal property, such as a vehicle or instrument, LawDepot’s Assignment template will redirect you to our Bill of Sale template.
First, decide what kind of Assignment contract you would like to create: one that transfers the rights of another contract, an income stream, or something else. Next, provide general information about:
- The assignor
- The assignee
- Any relevant third party (such as the original party in the contract you plan to assign)
Clarify if the Assignment is for part or all of the contract. Will you be signing over the entire contract or individual contract rights? It also asks if you will attach a copy of the original document. It’s a good idea to attach a copy of the original contract, which will act as an exhibit to the Assignment.
Next, you will enter the details of the Assignment, such as the date. As part of LawDepot’s Assignment contract, you can state if you will receive consideration for granting the transfer.
Consideration is any benefit or profit that the two parties exchange during the transfer. It is important to properly execute the document to be sure it is legally enforceable.
Can you assign part of a contract?
Yes, you can partially assign contracts that are possible to complete in parts. For example, if a company accepts a contract to build a house, they may assign part of the build to another company that specializes in plumbing. The plumbing company would then assume responsibility for the house’s plumbing during the build.
What is a Lease Assignment?
A Lease Assignment, also known as a lease takeover contract, is a specific kind of Assignment document that transfers the remaining interest in a lease from an original tenant to a new tenant. Similar to other Assignment documents, the new tenant assumes the rights and responsibilities of the lease after the document is made official.
If you wish to transfer a lease to a new tenant, consider using our Lease Assignment Agreement instead. While you can use an Assignment, our Lease Assignment Agreement has more specific options for a lease assignment.
With a Sublease, the original lease remains intact. The original tenant remains responsible for the obligations of the original Lease. However, they can sublet part or all of their rented property to a new tenant. This means that the original tenant essentially becomes a landlord to their subtenant.
Can I revoke an Assignment?
Typically speaking, yes. Different kinds of Assignments will have different levels of permanency. If an assignor revokes an assignment, they take back the rights and responsibilities exchanged within the Assignment document.
