What is Assignment of Contract in Contract Law?

In the context of contract law, an assignor is a party who transfers their rights and obligations under a contract to another party, known as the assignee. The assignment of a contract occurs when the assignor formally assigns their rights and obligations to the assignee, typically by way of a written agreement.

For example, if John has a contract with a supplier to deliver goods, and he wants to sell his business to Mary, John can assign the contract to Mary by providing her with written notice of the assignment and obtaining the supplier's consent to the transfer. Once the assignment is complete, Mary becomes the party responsible for fulfilling the obligations under the contract, and the supplier must deal with Mary instead of John.

It's important to note that not all contracts can be assigned. Some contracts may contain provisions that prohibit assignment or require the other party's consent before assignment can occur. Additionally, some contracts may be subject to specific legal requirements or procedures that must be followed in order for the assignment to be valid.