Assignment agreement
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- Length:6 pages (1300 words)
- Available in:
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About this deed of assignment
Use this deed of assignment to transfer one or more contracts between two parties where the agreement of the other original party is not needed.
Commonly, this assignment agreement would be used to transfer customer service contracts between businesses when one business buys the other, but it can be as easily applied to other uses. This is a simple yet comprehensive agreement that ensures a quick “handover” of a contract.
Also included with the deed of assignment is a letter template to send to customers informing them of the change.
Why a deed of assignment rather than an assignment contract
Our assignment agreement has been drawn as a deed rather than a contract. At law, a contract requires consideration (something in return for the assignment). A deed does not require consideration, so it is a more flexible way of achieving the same end.
When to use this deed of assignment
Assignment is an easy way of transferring a contract because it only requires the agreement of the original party to the contract and party taking on the rights and responsibilities. However, assignment is not always possible (some contracts have non-assignment clauses requiring all parties to the contract to agree).
You should use a novation agreement rather than a deed of assignment if all parties to the contract need to agree to the change and sign the deed. If in doubt, we recommend that you novate using: Novation agreement: transfer of service contract .
Agreement features and contents
- Suitable when either party is resident outside the Canada
- Ensures a legal transfer as it is drawn as an agreement between all parties
- Comprehensive provisions provide ideas for you to mould
- Letter to customers included so that you can ensure a successful future relationship with your new clients
- Suitable for all Provinces of Canada
The deed of assignment contains the following sections:
- Details of the parties
- Warranties
- The assignment
- Existing claims: sets out how outstanding claims will be dealt with
- Other usual legal provisions in plain English
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