The basics of Simple Assignment of Contract – Interest in Estate
What is meant by Simple Assignment of Contract – Interest in Estate?
Assignment of a contract takes place when a party of an already existing contract (called as “assignor”) provides/hands off contractual benefits and obligations to a different party (called “assignee”). Basically, assignor wants assignee to fill in assignor’s own shoes and also assume all the contractual rights and obligations. To accomplish this, other party (assignee) to contract should be duly notified.
How an Assignment Works?
How the assignment of a contract pans out will depend on various factors. The most important factor is the language of contract. A few contracts contain clauses which prohibit assignment. Others may require other party (assignee) to provide consent to assignment.
When will Assignments not get enforced?
Assignment of contract does not get enforced in below cases.
- Contract prohibits assignments- Contractual language, called anti-assignment clauses, can void or prohibit an assignment.
- Assignment materially changes the expectations under contract.In case assignment affects performance due dictated by contract, decreases value or returns anticipated, or raises risks for other party (assignee) to contract (party who isn’t assigning the contractual rights), the courts are likely to not enforce the requested arrangement.
- Assignment violates any state law or any public policy.
Final words for Simple Assignment of Contract – Interest in Estate
At time of purchase of real estate, may it be commercial, residential or a vacant piece of land, ultimate buyer need not be identified when offer is made. As a thumb rule, buyer’s interest in any real estate contract is considered freely assignable barring any special contractual limitations imposed by the seller.