Okay. So what is the assignment of a
contract? Well generally there are rights
and obligations or duties between the
parties to a contract to the parties to
the agreement, so if either party wishes
to assign their rights or their
obligations under the contract then
that's a transfer a transfer of the
contract so it can go either way rights
or duties so if you transfer to me the
duty to perform then I now carry your
duty to perform if you transfer me your
rights and I have the right to receive
the benefits that you would have
received under this agreement. Okay. The
assign or is the person a signing the
contract Missoni is the person receiving
the rights or obligations under the
contract. Okay. So now here's the
important thing an individual who
receives an assignment under the
contract of benefits of rights they have
a duty to notify the obligor, the person
in the contract who has the obligation
to perform those duties, so that they
will be the individual that actually
receives those duties. So take me for
example I'm a part of the contract and I
transfer you my benefits or my rights
under the contract, now I may later
attempt to transfer those rights to
someone else it is incumbent upon you in
most states to notify the obligor, the
person who owes initially me than you
the duties under the contract, that you
have been assigned those rights okay and
that they should perform those
obligations for you and you should
prefer you should benefit from those
rights. Now there are certain types of
contracts where you cannot assign the
right sort of duties under the agreement,
examples would be say a supply contract,
if I have a duty to supply all the
materials that you need in your
construction business now you wish to
transfer those rights to someone else
well that may not be assignable because
the person you assign it to they have
far greater needs than you
and to put on me the obligation of
having to meet their needs
would be above and beyond the
contemplation of our original agreement,
so in that case that supply contract or
requirements contract may not be
assignable. Another type of a non
assignable contract would be a contract
that depends heavily heavily on these
specific skills of an individual
performing that contract, so say I'm a
professional singer and you hire me to
sing in an event, now I decide to
transfer that to another individual now
that's not a transferable contract it's
not a transferable obligation simply
because you hired me and you depended
specifically on my skill or my voice or
my talent in performing you didn't
contract with the person I'm trying to
transfer this to, so that would be
another example of one that where the
obligation is not transferable. Okay. Now
say I do transfer an obligation under
our existing contract, now my transfer of
that obligation does not relieve me from
liability for failure to perform, okay, so
say the person I transfer it to does not
perform the contract as they're supposed
to well I'm not relieved of liability
you can still sue me under that contract
the only way I am relieved from
potential liability is to do what's
called a novation and that's an entering
getting an agreement between the three
parties the person to whom the
obligation was transferred and the
original parties through the contract
that says okay I have transferred this
agreement and no longer liable under the
contract we have a novation or a new
contract between the transferee and the
other party to the contract. So those are
the basic elements of of transferring
assignment of rights and obligations
under your contract.