Assignment/ Novation Agreement

An Assignment or Novation Agreement is used when transferring rights or obligations under an existing contract to a third party. These agreements ensure the legal and proper continuation of responsibilities and benefits under the original contract.

• Assignment involves transferring contractual rights (but not obligations) from one party (the “Assignor”) to another (the “Assignee”), usually without needing consent from the other original party, unless specified.

• Novation replaces one party in the contract with a new party, transferring both rights and obligations. It requires the consent of all original and incoming parties.

These agreements typically include:

• Details of the original contract being assigned or novated

• Identification of all parties involved

• Effective date of the transfer

• Consent and acknowledgment provisions

• Representations and warranties

Assignment and Novation Agreements help maintain continuity in business relationships while ensuring legal clarity when parties or responsibilities change.