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Contracts

assignment

The assignment of a contract occurs when one party to the contract (the assignor) transfers its rights and responsibilities under the contract to another person or entity (the assignee)—usually someone who was not a party to the original contract.

Contracts often include a paragraph or clause near the end of the agreement that addresses whether the parties may assign the contract.

In Alabama, the assignment of a contract is generally permissible unless the contract itself prohibits it or the assignment would significantly change the obligations of the other party. Alabama law recognizes the right to assign a contract, and such assignments transfer the assignor's rights and responsibilities to the assignee. However, if the contract includes a non-assignment clause, then the parties are not allowed to assign the contract without the consent of the other party. Additionally, certain types of contracts, such as those for personal services, may not be assignable due to the personal nature of the services to be provided. It is important for parties to review the specific terms of their contract and consult with an attorney to understand the implications of an assignment clause and the enforceability of any assignment under Alabama law.

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Contracts

assignment

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Alabama State Code

Alabama State Code

Contracts

assignment

Articles