Assigning Contracts

Generally speaking in equity (and subject to certain conditions at law), the benefit of an agreement may be freely assigned to a third party without the consent of any other party. The burden of an agreement cannot be assigned. A transfer of obligations requires a novation, which must be entered into by the existing parties to the agreement and the proposed new party.

It may, however, be possible for the performance of obligations to be sub-contracted (since the original party to the contract remains liable for the performance of his sub-contractor). If an assignment is to be prohibited, it may therefore be advisable to also have an express prohibition  on sub-contracting (and delegation of obligations).

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