In any business, contracts will be everywhere you go — from your customers to suppliers, contractors, employees, graphic designers and even your monthly subscriptions!
However, contracts generally are signed between two parties.
So, what happens if one party wants to transfer or assign their rights and obligations under a contract to another party?
This is where a Deed of Assignment comes in.
What Is A Deed?
In the legal world, there are two main types of legal documents: agreements and deeds.
Agreements are generally the most common contracts you’ll see. However, deeds work a little differently.
Put simply, a deed needs to be physically signed and witnessed in person. This means that it’s difficult to sign deeds with international parties.
So, it’s important to understand that a deed has specific requirements for execution.
What Is A Deed of Assignment?
A Deed of Assignment is a legal document that transfers or assigns the legal rights and obligations to another party.
And it varies depending on your situation.
For example, an assignment could work for simple things like intellectual property. When a graphic designer creates a logo for you, you might want to make sure that logo is owned by you. In this case, the graphic designer would “assign” that copyright to you.
Or, if you’re selling your business, you might want to transfer your contractual relationships to whoever is purchasing your business.
For example, if you have existing contracts with suppliers to your cafe business, you might look at transferring these to the buyer. Here, you’d sign a Deed of Assignment to transfer the rights and obligations of that contract to the new owner of your business.
A Deed of Assignment makes sure that you no longer have continuing obligations and rights as a signatory to that contract. The last thing you want is to be liable or accountable for a contract you forgot to assign to someone.
If you need help putting together a Deed of Assignment, let’s chat!
You can reach out to our friendly team at [email protected] for a free, no-obligations consultation about your specific situation and the legal documents that are right for you.
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