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 Hawaii, the assignment of a contract is generally permissible unless the contract itself prohibits it or if the assignment would significantly change the obligations of the other party. Contractual rights can be assigned without the consent of the obligor unless the contract stipulates otherwise or the assignment would materially alter the performance expected, increase the burden or risk imposed on the obligor, or impair the obligor's chance of obtaining return performance. A clause addressing the ability to assign the contract is commonly found near the end of the agreement, and it dictates the permissibility and any conditions of such an assignment. If a contract is silent on the issue of assignment, it is typically assumed that assignment is allowed. However, certain types of contracts, such as personal service contracts or contracts involving unique personal skills, are generally not assignable. It is important to review the specific terms of the contract and relevant Hawaii state statutes to understand the full legal implications of an assignment.