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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 Maryland, 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. Maryland follows the common law principles regarding contract assignments, which means that any rights under a contract can be assigned unless the contract is personal in nature, involves trust and confidence, or the assignment would increase the burden of performance on the non-assigning party. Contracts often contain specific clauses that outline the permissibility of assignment, and these clauses must be adhered to. If a contract is silent on the issue of assignment, it is typically assumed that assignment is allowed. However, the assignment of responsibilities or duties under a contract is more complex and may not be permissible without the consent of the non-assigning party, especially if it would alter the performance expected under the contract.

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Contracts

assignment

Individual & Family Legal Plan

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Maryland State Code

Maryland State Code

Contracts

assignment

Articles