What is an assignment of a contract?

Assignment of a contract is a transfer of rights or obligations contained in the contract from one person to another. This happens when a party to the contract authorizes another person to take over responsibility for fulfilling the terms of the agreement. In New Hampshire, the law of contracts generally applies to the assignment of a contract, meaning that the same rules that apply to a contract also apply to its assignment. In order for a contract to be assigned, all parties involved must agree that the assignment is valid. This is known as "mutual consent" and must be explicitly stated for the assignment to be valid. The assignee, or the person taking over the rights and obligations of the contract, must also accept the assignment before it can be effective. In New Hampshire, the assignor, or the party transferring the rights and obligations of the contract, will be released from any obligations once the assignment is validly executed. This means that the assignee is now responsible for satisfying the terms of the contract. The assignee stands in the place of the assignor, and thus, the assignor may no longer be held liable for any breach of the contract. Assignment of a contract is an important legal tool, as it allows for the transfer of contractual rights and obligations without completely voiding the contract. It is important to note, however, that not all contracts can be assigned. In some cases, the parties will have included an explicit clause in the original contract which states that the contract is not assignable. In these cases, the contract cannot be assigned.

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