What is an assignment of a contract?

An assignment of a contract in Florida is when one party to a contract (known as the assignor) passes their rights and obligations under the contract to another party (known as the assignee). This transfer means that the assignee assumes all the rights and obligations that the assignor had. Generally, assignments are used in situations where the assignor wants to transfer their rights and obligations for economic benefit, to take advantage of a new opportunity, or to sign away their rights in a contract to someone else. To be valid, an assignment of contract must follow the conditions of the contract that the parties originally agreed upon. If the contract has any restrictions on assignment, then the assignor must obey them. The assignee must also abide by the same conditions of the contract, as the assignee will now be responsible for fulfilling the terms. In Florida, there are certain formalities that must be met in order for the assignment of the contract to be legally binding. For example, the assignor must give written notice of the assignment to the assignee, and both parties must enter into a separate agreement confirming the assignment. The assignment of the contract is an important process, and it is important for both parties to understand the implications before they enter into the agreement. It is important for both parties to seek legal advice in order to ensure that all their rights and obligations are met.

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