Contract Assignment Form

Contract Assignments. In an assignment one party to a contract takes his right to performance and gives it to someone else.


  • For example:

We have Joe who’s a great football player with many fans but his biggest fan and his favorite fan is his own mom. One day Joe signs a contract with a professional football team the California crushers for 1 million dollars but he remembers his  hard-working mom. So he assigns his right to payment of the 1 million dollars to his mom. So now Joe is the assignor and Joe’s mom is the assignee and she’s been assigned the right to payment of the 1 million dollars from the Crushers the obligor. 

Our general rule is there’s no problem assigning rights under a contract but there can be a problem if it’s a personal service contract, or if the other party the obligor will be burdened, or put at risk because of the assignment.

  • For example:

Joe’s mom is a baker and she signs a contract to bake pies and the contract is with a small bakery Acme bakery and Joe’s mom agrees to bake all the pies that Acme needs. This means that everyday Joe’s mom has to bake 4 or 5 pies but what if Acme bakery decides to assign the contract to big food incorporated and big food incorporated says well we need 10,000 pies every month, well that’s just not fair. Joe’s mom as the obligor can’t be forced to bake pies for a big food incorporated. 

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