An assignment letter is a kind of formal document that helps in the transferring of benefits and rights from one party to the other.
It is also recognized with the following names:
- Assumption & Assignment Agreement
- Assignment Agreement
- Assignment Contract
Parties in Assignment
Commonly, there’re 2 kinds of parties in the Assignment as follows:
This party transfers the obligations and rights to some other organization or the individual.
This party receives whatever has been transferred to it by the Assignor in the original contract.
Additionally, there can be another third party which can be some corporation or the individual with the assignor.
Purpose of Assignment
The assignment can be used to opt for the obligations and rights in someone’s place as the original contract allows it to do so. However, it’s a very good idea that before writing an assignment one looks into an original contract to make sure that it’s still liable to do so or not.
Additionally, there will be a need to consider the second party for signing the Wavier or release agreement so that you could absolve from liability of contract. Additionally, it’s possible that you transfer income stream benefits to the assignee.
For example, you have uploaded the video on the internet that can make money. But you have also taken some content from another video. This can become a dispute of copyright. To solve such an issue you can always write the agreement in which you’ll agree to pay some of the money to another party for a certain amount of period.
However, there are situations in which you can use Assignment to transfer some rights to intellectual or personal property. Anyhow, mostly different forms like Sale Bill, Trademark Assignment or Trade Name assignment are used for this purpose.
Difference between Delegation & Assignment
The major difference among delegation and assignment is of the contractual rights. Delegation helps in Transferring duties while assignment helps in transferring both duties and rights to another party.
For example, you are the contractor who has been hired to remodel the house. For this purpose, you have also signed the written contract in which it’s written that you will work for money. Unless and until you’re the skilled contractor, you have to hire people for different work such as painter, electrician, etc. You will give them duties and give money to them. The contract you will sign with such workers will be a delegation. On the other hand, the contract you’ve signed with the homeowner will be an agreement in which you are given the duties and rights.
Assigning of the rights
In order to assign the rights, you need the following things
- Information of assignor i.e his address and name
- Information of Assignee i.e his address and name
- Details of the third party i.e its address and name
- Information on original contracts such as its execution date and its purpose.
- Transfer rights description such as are they partial rights or full rights.
- Information on profit such as assets, money, property, etc. that is received by the assignor for the assignment of contract.
- Execution date and the parties signatures
Moreover, you can get your Assignment notarized by different individuals who do not belong to a contract. Anyhow, it’s not the requirement. Make sure you always proofread the terms and conditions of the original contract.
For example, it’s possible that in the original contract it’s written that you’ve to get a signature from the second party before you assign it to the other party. Additionally, it may also happen that there may be some conditions in which you have to be liable for original contract terms.
Related Documents to Assignment Letter:
- Trade Name Assignment
It’s a document that helps in transferring the trade rights to another party.
- Sale Bill
It’s the sale receipt which is used to transfer the ownership of a property from seller to a buyer.
- Agreement of Commercial Sublease
It’s used for the transferring of lease obligations. The transfer is made from a commercial tenant to a new tenant having the permission of a landlord.
- Contract Addendum
It’s used to amend the original contract in certain circumstances.
- Agreement of Lease Assignment
It’s used when the property of tenant is transferred to a new individual having the same obligations to follow as in the original lease contract.
- Termination Agreement
This kind of agreement is used to discontinue the original contract.
- Trademark Assignment
The document that transfers trademark ownership to a new party.
Assignment of Rights Letter Template
Subject: Assignment of Rights
____________ of _______________, _____________, ________________
Assigner has assigned the obligations and rights of contract on date ____________ for _____________________ with ______________ of_________________ , _______________,_____________________.
In consideration of money $___________ that has been paid through cash by Assignee.
Assignor has the following rights and obligations with a transfer of this assignment.
- The assignee still owns the assignor above all of the claims
- Assignor has all rights to transfer such contract
- Assignor is not going to have any right of this contract after Assignment will get processed.
- Assignor is not going to do anything that will cause a problem to the Assignee.
- Assignor hasn’t done anything willingly that will affect the contract in any way.
Assignor has asked ______________ to complete the obligations of a contract, which otherwise would be owned to Assignor.
It ensures that the Agreement will benefit the Assignee in his/her future aspects.
The Agreement is fulfilled by following the laws of ____________________ state.
SIGNED, DELIVEERD & SEALED
On ______________ in presence of
NOTARY PUBLIC OF STATE