What is an assignment of a contract?

An assignment of a contract is when a party (the assignor) transfers all of their rights and obligations under a contract to another party (the assignee). This means that the assignee takes over the contractual obligations under the same terms of the original contract. In Arizona, the assignment of a contract must take place in writing and must include certain elements such as the original parties to the contract, the original terms of the contract, and the date of the assignment. The assignee must also accept the contract assignment in writing. Once the assignment has been accepted, it is legally binding and the assignee is responsible for any obligations that the assignor had under the contract. Assignment of a contract can be beneficial when one party is unable to fulfill the obligations that they had originally agreed to in the contract. By assigning the contract to another party, the original party does not have to worry about being held liable for any of the obligations that they had agreed to in the contract.

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