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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 Pennsylvania, 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. Contracts often contain an 'assignment clause' which dictates whether and how the parties to the contract may transfer their rights and responsibilities to others. If such a clause is present and explicitly prohibits assignment, then parties are not free to assign the contract without the consent of the other party. However, if the contract is silent on assignment, it is typically assumed that assignment is allowed. It is important to note that certain types of contracts, such as those involving personal services or contracts where the performance is highly specific to the party, may not be assignable. An attorney can provide specific guidance on the enforceability of an assignment clause and the legal implications of transferring contractual rights and obligations in Pennsylvania.

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Contracts

assignment

Individual & Family Legal Plan

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Pennsylvania State Code

Pennsylvania State Code

Contracts

assignment

Articles