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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 New Mexico, 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. New Mexico 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 an 'assignment clause' which either allows for assignment with certain stipulations, requires the other party's consent, or outright prohibits assignment. It is important for parties to review the contract terms to understand their rights and obligations regarding assignment. If an assignment is allowed, the assignor typically remains liable unless the other original party to the contract releases them from liability, often requiring a novation agreement. An attorney can provide specific guidance on the implications of assigning a contract in New Mexico.

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Contracts

assignment

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New-Mexico State Code

New-Mexico State Code

Contracts

assignment

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