The Definition of Assignment & Assumption Agreement

An assigment and assumption agreement assigns rights and delegates duties

Assignment and assumption agreements are common when third parties are brought into an existing contract. It is important to understand the rights and liabilities assumed before signing such agreements.



Laws vary by state. Seek the guidance of an attorney in your state for a complete understanding of assignment and assumption agreements.

Definition

According to "Black's Law Dictionary," this agreement grants the rights obtained from the contract by the assignor to the assignee who also assumes the obligations of the contract. This agreement acts as an assignment of rights and a delegation of contractual duties.

Uses

The agreements are used commonly in situations where an individual renting a house or apartment wishes to assign the remainder of his rental term to another person. Similarly, a person may assign their right to be paid to a creditor to whom they owe money. Additionally, these agreements may be given to a person as a gift to receive goods, or money contracted for, on behalf of the assignor.

Limitations

A person cannot make an assignment that would increase the burden on the other contract part. Under this agreement, individuals cannot delegate their duties and obligations if the performance is a specialized skill such as attorney or accountant work.

References

• "Black's Law Dictionary"; Bryan A. Garner, ed.; 2006
• LexisNexis Contracts Capsule Summary- Chapter 18