What is an assignment of a contract?

An assignment of a contract is a legal process whereby one party transfers their rights and obligations to another party. In Washington, this process must be in writing and signed by both parties. The person transferring or assigning their rights is known as the assignor, while the person receiving the assigned rights is known as the assignee. The assignee is then responsible for completing all of the obligations, and they receive any benefits that were previously assigned. The assignor no longer has any rights or obligations under the contract, and can no longer benefit from it. For example, if a contract states that the assignor will receive $10,000 from the other party, the assignee would be responsible for collecting this money upon completion of the contract. The assignor remains liable for any breach of the agreement, even after assigning their rights. The assignee is usually required to provide assurance that they will comply with the contract’s terms to the assignor. It is important to note that not all contracts can be assigned. It is important to check the language of the contract prior to assigning your rights and obligations.

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