A contract is an agreement or written statement between two parties in which one party is the obligor and the other party is the client who hired the obligor. In the contract, the client explains that he has hired the contract for specific purposes or services where the obligor explains that he has agreed to provide those services in exchange of certain amount of money that the client has also agreed to pay to the contractor. These contracts are very common in construction services.
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Brief Description of Assignment of Contract:
Assignment of contract is very similar to subcontract agreement in which an existing contractor hires another contractor to work for him and get paid but in assignment of contract, there is only one contractor; the new contractor or obligor who after signing this contact, provides the services to the client and receives compensation in return. There are many situations in which contracts are assigned to third parties. For example, the actual obligor claims that he can’t provide the services by himself and the client agrees to work with another contractor or obligor who then takes the responsibility to provide the services to the client on behalf of the actual obligor and the client also agrees that he will from now on, pay the compensation in return of the services to the new obligor.
Key Elements to include in the Assignment of Contract:
- Name of the actual contract with complete address
- Name of the person who entered in the contract with the contractor with complete address
- Name of the new contract or assignee with complete address
- Date when the assignment of contract is being signed by the parties
- Details of the actual contract that was signed between the client and contractor
- Date when the actual contract was written and signed
- Written consent of the client indicating the permission of assignment of the contract
- List of obligations, services or responsibilities that the new contractor or assignee is required to perform or provide
- Details of charges that the client has agreed to pay to the contractor along with the money that the contract has already received from the client and the remaining amount as well
- Names of the witnesses with complete addresses
- Signature of all parties involved in the assignment i.e. actual contractor, new contract, client and witnesses
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