ASSIGNMENT OF A NEW JERSEY CONTRACT
Most contracts permit an assignment if the other party to the contract approves the assignment.
Many contracts require the other side to approve your assignment of the contract before they will approve it. If the assignment is “reasonable,” meaning that the assignment won’t jeopardize payment, performance and the security of the other party or increase the other party’s risks of a default, most parties will accept it… but not always.
If your contract requires another’s consent, it’s a good idea to get that consent in writing before you commit yourself to a contract assignment.
The downside of assigning a contract is that you may remain responsible for the performance of the contract, if the person to whom you’re assigning the contract (called the “assignee”) breaches the contract.
The best approach to take when you’re assigning a contract to another is to make a written assignment agreement. Fredrick P. Niemann, Esq. can help you draft an agreement tailored to your specific circumstances, with language that clearly spells out everyone’s responsibilities and rights.
That way, you’re less likely to be left holding the contract “bag” if the assignee doesn’t live up to his or her contract obligations.
You can reach Fredrick P. Niemann toll-free at (855) 376-5291 or email him at email@example.com if you have questions on assigning a NJ contract. He genuinely welcomes your inquiries and has decades of real world business experience to offer you.
Written by Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Monmouth County New Jersey Contract Attorney