Law & Legal & Attorney Real estate & property Law

Importance of Contract Assignment

In the word of real estate laws and contracts, there is a situation where the property right to perform under a contract can be bought and sold.
Courts will distinguish between the assignment of your right to receive performance from the other party, and the delegation of your duty to perform a contractual promise.
For example, if you are in a position of the landlord under an apartment rental agreement, you have an option of assigning the right to receive the monthly rental payment to another party.
In such case, you are not delegating your original duty to maintain the property well functioning.
On the other hands, if you are in a position of tenant, you have an option of delegating your duty to make a monthly rental payment to your replacement tenant.
And at the same time you can still assign your right to live in the apartment.
There is a difference between those cases.
If you assigned your rights to another party, then you do not have them anymore.
However once you delegate your duties, you may not be entirely out of the obligations as you thought originally.
In case the substitute tenant fails to pay the rent, it is still possible for the landlord to contact you and collect any unpaid amount of payment from you.
If you don't like this term, then there is a way of altering this basic legal rule on the written rental agreement forms.
When the contract rights and duties are assigned or delegated between related parties, there are some exceptions to those rules that can be used in particular situations.
One of the examples would be that the parties to a contract could specifically agree that no such assignment or delegation is permitted.
In other cases, some contracts make the rights and duties nontransferable.
Even if most people use the term contract assignment to be considered as both the assignment of rights and the delegation of duties, if you are intending to delegate a duty then it is always a good idea to write it down specifically.
And if you want to be out of the designated duty of performing the responsibilities, you should be released from that duty by the person who is entitled to receive the performance that was written down on the document of contract agreement.
When you create an assignment of contract, usually you specify the value received, assignor of the rights, title and interest and the assignee along with both parties' signatures.
And after the contract is made, it is important to notify the party who is expecting to receive the performance which was specified on the contract assignment due to mutual agreement.

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