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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 Colorado, as in many other states, 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. The clause in a contract that addresses the ability to assign the contract is known as an 'assignment clause.' This clause may either allow for free assignment, prohibit assignment completely, or allow assignment only with certain conditions or the consent of the other party. When a contract is assigned, the assignor transfers their rights and obligations under the contract to the assignee. However, unless the other party to the contract (the non-assigning party) agrees to release the assignor from liability, the assignor may still be liable for the performance of the contract if the assignee fails to fulfill the contractual obligations. It's important to review the specific language of the contract and possibly consult with an attorney to understand the implications of assigning a contract in Colorado.

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Contracts

assignment

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Contracts

assignment

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