What Is an Assignment Agreement?
An assignment agreement is a transfer of benefits from one person to another. It is a legal agreement of complete transfer of rights accruing to one of the parties involved in the contract. An assignment agreement is usually seen in real estate but can be seen in other contracts like for lease, copyright, trademark, debt, invention, patent, and purchase. Even though other contracts are legal, only the assignment agreement has the power to transfer rights and benefits. The things that can be transferred by the assignment contract are loans, deeds, assumptions, mortgage, and properties.
How to Write an Assignment Agreement?
In writing agreements and contracts, it requires a lot of careful thinking because it is a legal document. A lease, rental, non-disclosure, or partnership agreement, or whatever you will be writing, will all need to be written comprehensively and professionally. To have a successful and well-written assignment agreement, here are a few steps that will guide you in writing your agreement.
1. Write the Parties and Recitals
The parties are the list of names of the assignor and assignee. This will be written in the first paragraph of the legal contract. The purpose of this part is to identify both parties of the assignment. As for the recital part, it will be the background information of the assignment. It is usually written using the "whereas" clause and it does not need to be in a whole sentence.
2. Allocate the Rights and Obligations
Assignment agreement means that you grant all the rights and obligations to the assignee. This part is the start of the body of your simple agreement. The content should prove that the assignor has granted all the benefits to the assignee.
3. Include the Acceptance of the Assignee
Since the assignor has already stated their grant of benefits, it is now time for the assignee to accept the obligations and duties. The assignee should acknowledge and embrace the new rights and duties that have been passed to them.
4. Designate Indemnification
Indemnify means that you agree on protecting someone when some legal claims were made against them because of the contract. In the sample agreement document, it should state that the assignee, assignor, and the obligor (the person who the assignor made the contract with) have agreed to indemnify. This part will avoid anyone that was involved in the agreement to be sued.
5. Summarize the Agreement
The first thing to do when you finalize the basic agreement is to find laws that will be used to interpret the agreement. Next is to include a severability clause that will be used to prevent a lawsuit. And the most generic thing to do is to sign the document. The agreement should be signed by the assignor, assignee, and the obligor. The very last thing is to show the assignment agreement to a lawyer. This is to let them add some additional provisions or to edit some language that needs to be in a more formal tone.