WHAT IS AN ASSIGNMENT OF RIGHTS?

In an Assignment of Rights one party who is entitled to the benefit of the contract transfers or shifts his rights to another party. The first party who was entitled to the contractual rights is called the assignor. The party that receives the rights of the contract is called the assignee.

WHEN DO YOU NEED AN ASSIGNMENT OF RIGHTS?

An Assignment of Rights or contract assignment is often needed when the obligor has to assign his or her rights to another party in order to fulfil the requirements of the contract. For example, a baker signed a contract to bake a wedding cake for a couple, but she became ill and could not fulfil her obligation to bake the cake; unless the original contract had a clause prohibiting assignment the original baker could assign her rights to another baker in the bakery.

Companies need an AGM Board Pack because the pack includes documents and instructions prepared by attorneys which helps to facilitate the meeting and ensures that all actions taken at the meeting are in accordance with the laws of the applicable country and or state.

WHAT IS INCLUDED IN AN ASSIGNMENT OF RIGHTS?

An Assignment of Rights should include the following:

• The name and information of the first party to the original agreement also known the obligor.

• The name and information of the party who is giving away or assigning his rights (the assignor).

• The name and information of the party who is receiving the rights of the contract (the assignee).

• The title and date of the original agreement along with the expiration date of the agreement.

• A statement of whether the consent of the first party/obligor must be obtained before the assignment can be undertaken.

• Written proof of the obligor’s consent to the assignment.

• The date the obligor rendered consent to the assignment.

• The effective date of the contract.

• A notice regarding the laws that govern the assignment of the contract.