Business Startup

Understanding Contract Terms (post 8): Assignments

We continue the Understanding Contract Terms series by explaining assignment clauses. Most contracts include some form of assignment clause. Assignment clauses are important to understand when determining your rights and liabilities under almost any contract.

Assigning a Contract

To understand why this clause is included in the contract it is important to first understand what it means to assign a contract. An assignment of a contract occurs when one party to the contract transfers to another party their  obligations, benefits, or obligations and benefits, of the contract.

In general, assignments are permitted unless there is an express prohibition against assignment in the contract. But this is a very general statement. Certain types of contracts, including “personal service contracts,” are by default unassignable. Also, contracts...

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Contracts

Series | Understanding Contract Terms

In this iVLG blog series, we take common terms you see in your business contracts and help break them down, so you can understand what exactly the terms mean, the role of each term in your contract, and how to explain to the other side why the term makes sense.

We know that reading a contract can be a daunting task, especially when it’s full of words you may not have seen or don’t fully understand. Our goal is to help you understand why contracts include the “boilerplate” terms and how those terms may affect your business. Next time you sign on the dotted line, you’ll know exactly what you’re agreeing to.

The understanding contract terms series will breakdown the following contract...

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