Contract Assignments. In an assignment one party to a contract takes his right to performance and gives it to someone else.
- For example:
We have Joe who’s a great football player with many fans but his biggest fan and his favorite fan is his own mom. One day Joe signs a contract with a professional football team the California crushers for 1 million dollars but he remembers his hard-working mom. So he assigns his right to payment of the 1 million dollars to his mom. So now Joe is the assignor and Joe’s mom is the assignee and she’s been assigned the right to payment of the 1 million dollars from the Crushers the obligor.
Our general rule is there’s no problem assigning rights under a contract but there can be a problem if it’s a personal service contract, or if the other party the obligor will be burdened, or put at risk because of the assignment.
- For example:
Joe’s mom is a baker and she signs a contract to bake pies and the contract is with a small bakery Acme bakery and Joe’s mom agrees to bake all the pies that Acme needs. This means that everyday Joe’s mom has to bake 4 or 5 pies but what if Acme bakery decides to assign the contract to big food incorporated and big food incorporated says well we need 10,000 pies every month, well that’s just not fair. Joe’s mom as the obligor can’t be forced to bake pies for a big food incorporated.
Related Forms:
Other Forms
- Affidavit Forms
- Assignment Forms
- Attorney Forms
- Bankruptcy Forms
- Bill of Sales Forms
- Borrow, Lend & Collection Forms
- Business Forms
- Confidentially Forms
- Contract Forms
- Copyright Forms
- Corporation Forms
- Credit Form
- Declaration Form
- Deed Forms
- Divorce Forms
- Employment Forms
- Entertainment Contract Forms
- Family Law Forms
- Free Will Forms
- Government Form
- Health Care Forms
- Homestead Form
- Indemnity Agreement Form
- Intellectual Property Forms
- Internet Forms
- Landlord and Tenant Forms
- Lease and Rental Forms
- Letter Forms
- Limited Liability Co. Form
- Non-Compete Forms
- Non-Disclosure Forms
- Notice Forms
- Parental Permission Forms
- Partnership Forms
- Power of Attorney Forms
- Premarital Forms
- Promissory Notes
- Real State Forms
- Release Forms
- Sale & Purchase Forms
- Technology Forms
- Trademarks Forms
- UCC Forms
