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An Assignment of Contract template helps transfer contract rights from one party to another. It can be used for business, real estate, commercial, or intellectual property matters. However, the original agreement must always allow for the transfer.
Last Update May 3rd, 2026
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An Assignment of Contract is a legal document that transfers contract rights from one party to another.
You may use it when you want another person or business to receive benefits under an existing contract. These benefits can include:
The original contract is always the starting point. It may allow assignment, require written consent, or prohibit the transfer.
In many cases, assigning a contract does not automatically remove your responsibilities. If you also want to transfer duties or be released from liability, the document must say this clearly.
The assignor is the person or business transferring the contract rights.
The assignee is the person or business receiving those rights.
The other party to the original contract may still need to perform, pay, or approve the transfer. This depends on the original contract’s terms.
You may need consent before assigning a contract. This depends on what the original agreement says.
Look for words such as:
If written consent is required, get it before you sign the assignment.
Even when consent is not required, you may still need to give notice. This is especially important if payment should now go to the assignee.
Not all contracts can be assigned. Some transfers are restricted or completely prohibited.
A contract may not be assignable if:
Always review the original contract before assuming the transfer is allowed. If an anti-assignment clause exists and you assign the contract anyway, the transfer may be void or put you in breach.
If you are unsure whether your contract can be assigned, legal advice is recommended before proceeding.
These terms are similar, but they do different things. You should know the difference before you transfer a contract.
| Term | Explanation |
|---|---|
| Assignment | You transfer contract rights to another party. This is often used for payment rights or other contract benefits. |
| Delegation | You transfer contract duties to another party. You may still be liable if the other party does not perform. |
| Novation | A new party replaces an original party. This usually requires all parties to agree and may release you from future duties. |
It’s a good idea to examine this document before your begin your own version, to get an idea of the typical contents and structure. Take a look at the Assignment of Contract template below. You can use it as a guide when drafting your document:
Before you assign a contract, make sure the transfer is allowed. Then put the terms in writing. Follow the steps below to complete assignment.
Read the original agreement first. Look for any assignment or consent clause.
This tells you:
Be clear about the rights you want to transfer.
You may assign all contract rights or only specific rights. For example, you could assign the right to receive payment.
Decide whether the assignee will only receive rights or also take on duties.
If duties are included, say so clearly in the document.
If the contract requires consent, get it in writing.
This helps prove that the other party accepted the transfer.
Add the following details:
You may also include payment terms, warranties, notice details, and governing law.
Sign the assignment agreement with the required parties.
Then notify the other party if the contract requires notice or if payment instructions have changed.
Keep the signed assignment with the original contract.
Also keep any written consent, notice, and proof of delivery.
You can use assignment agreements in different situations. The right document depends on what you are transferring.
| Type | Explanation |
|---|---|
| Real Estate Assignment | Lets you transfer rights under a purchase agreement to another buyer. Check the purchase contract first, as many real estate agreements require seller consent. |
| Business Assignment | Helps you transfer customer contracts, vendor agreements, or service rights. This is common during asset sales, restructuring, or business transfers. |
| Commercial Assignment | Transfers payment rights, supply rights, or other business contract benefits. If you are assigning receivables, extra commercial law rules may apply. |
| Intellectual Property Assignment | Transfers rights in assets such as copyrights, trademarks, patents, software, or designs. Describe the property clearly, as some IP transfers may need to be filed or recorded. |
Assignment rules can vary by contract and by state contract law. These answers explain common issues in simple terms.
No, a lawyer is not always required to assign a contract. However, legal advice is recommended for:
A lawyer can confirm whether assignment is allowed and whether the assignor remains liable after the transfer.
Yes, some contracts can be assigned without consent. This depends on the original contract and applicable law.
If the contract requires written consent, the parties should get approval before assigning it. Some rights may also be non-assignable. This is usually the case if the transfer would materially change the other party’s risk or duties.
You’re not typically required to notarize an Assignment agreement.
However, notarization may be useful as proof of signature. It may also be required for certain real estate, government, or recorded documents. Always check the original contract and the law that applies to the assignment.
