Signatory Novation Agreement Made Easy

Esign novation agreement

okay so what is the assignment of a contract well generally there are rights and obligations or duties between the parties to a contract to the parties to the agreement so if either party wishes to assign their rights or their obligations under the contract then that's a transfer a transfer of the contract so it can go either way rights or duties so if you transfer to me the duty to perform then I now carry your duty to perform if you transfer me your rights and I have the right to receive the benefits that you would have received under this agreement okay the assign or is the person a signing the contract Missoni is the person receiving the rights or obligations under the contract okay so now here's the important thing an individual who receives an assignment under the contract of benefits of rights they have a duty to notify the obligor the person in the contract who has the obligation to perform those duties so that they will be the individual that actually receives those duties so take me for example I'm a part of the contract and I transfer you my benefits or my rights under the contract now I may later attempt to transfer those rights to someone else it is incumbent upon you in most states to notify the obligor the person who owes initially me than you the duties under the contract that you have been assigned those rights okay and that they should perform those obligations for you and you should prefer you should benefit from those rights now there are certain types of contracts where you cannot assign the right sort of duties under the agreement examples would be say a supply contract if I have a duty to supply all the materials that you need in your construction business now you wish to transfer those rights to someone else well that may not be assignable because the person you assign it to they have far greater needs than you and to put on me the obligation of having to meet their needs would be above and beyond the contemplation of our original agreement so in that case that supply contract or requirements contract may not be assignable another type of a non assignable contract would be a contract that depends heavily heavily on these specific skills of an individual performing that contract so say I'm a professional singer and you hire me to sing in an event now I decide to transfer that to another individual now that's not a transferable contract it's not a transferable obligation simply because you hired me and you depended specifically on my skill or my voice or my talent in performing you didn't contract with the person I'm trying to transfer this to so that would be another example of one that where the obligation is not transferable okay now say I do transfer an obligation under our existing contract now my transfer of that obligation does not relieve me from liability for failure to perform okay so say the person I transfer it to does not perform the contract as they're supposed to well I'm not relieved of liability you can still sue me under that contract the only way I am relieved from potential liability is to do what's called an ovation and that's an entering getting an agreement between the three parties the person to whom the obligation was transferred and the original parties through the contract that says okay I have transferred this agreement and no longer liable under the contract we have an ovation or a new contract between the transferee and the other party to the contract so those are the basic elements of of transferring assignment of rights and obligations under your contract