Assignments Clause in Contracts

Assignment clauses in contracts deal with how and when a party wishing to transfer its rights or obligations to another party may do so under the contract . Most assignment clauses prohibit an assignment without the other party's consent. In some situations though, you might want specific rights to assign the contract, such as in connection with the sale of your business.

This clause helps avoid the situation of having to deal with a third party who was not a party to the contract.

Here is a sample clause:

Assignment and Delegation. Neither party shall voluntarily, by operation of law, or otherwise assign any of its rights or delegate any of its duties, hypothecate, give, transfer, mortgage, sublet, license, or otherwise transfer or encumber all or part of its rights, duties, or other interests in this Agreement or the proceeds thereof without the other party's written consent. Any attempt to make an assignment or delegation in violation of this provision shall be a material default under this Agreement and any assignment or delegation in violation of this provision shall be null and void.