What is a deed of assignment template?
The basics: This deed of assignment template is designed for transferring rights, benefits, or interests in an existing agreement from one party to another.
Assignments must be in writing: It is often a contractual requirement that the rights to an agreement can only be assigned where such assignments are agreed in writing between the parties. The original agreement will typically contain a clause to this effect. The deed of assignment template will allow the parties to document the assignment in writing.
When should you use this deed of assignment template?
You should use this deed of assignment template when you wish to assign the benefits of a commercial contract and you are able to assign a party’s benefits to the agreement in accordance with the original agreement’s terms.
Here are some scenarios where you might need a deed of assignment to assign the rights to a commercial contract:
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Business acquisition or merger: If your company is acquired by another company or merges with another entity, you may need to assign the rights of existing contracts to the acquiring or surviving entity.
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Contractual restructuring: During corporate restructuring or reorganisation, you may need to assign the rights of existing contracts to different entities within your organisation to align with the new organisational structure.
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Project financing: In project financing arrangements, where multiple parties are involved in financing and executing a project, you may need to assign the rights of project-related contracts to lenders, investors, or other stakeholders.
Not for property: You should not use this deed of assignment template if you are assigning the rights to a property agreement.
What is the difference between assignment and novation of a contract?
The key difference between assignment and novation is that assignment only transfers the benefits of an agreement to a new party, with the original party remaining responsible for other contractual commitments and burdens. Novation, on the other hand, relieves the original party from the benefits, obligations and liabilities under the agreement to the third party, effectively substituting the new party for the original party. Replacing the original party to the agreement relieves the original party from all responsibilities under the agreement, and the new party takes on these responsibilities.
Novation gives the parties a clean break by replacing the original party entirely, allowing a new party to take over all obligations, benefits, and liabilities under the agreement. This ensures the original party is fully released from the contract.
You can access our novation agreement template here.
What are the benefits of using a deed of assignment template?
Efficiency: This deed of assignment template can be used to transfer the benefits of an agreement to a new party without the need to enter into another separate contract that replaces the original agreement. This effectively assigns only the rights to an agreement, while the original party remains responsible for the liabilities under that contract. This method not only assigns just the benefits of the agreement but also saves time and effort by avoiding the need to renegotiate the broader legal terms of the original agreement.
Accuracy: This deed of assignment template will ask you a series of questions that prompt you to include all of the relevant information about the original agreement that is being assigned. It also allows you to attach the original agreement to the deed of assignment template.
Cost-effective without compromising on quality: This deed of assignment template can be used to assign a simple contract or deed, whilst only assigning the benefits of the original agreement. The platform is simple to use, intuitive and avoids the need to engage lawyers to draft a simple deed of assignment template on your behalf. This template was created by qualified lawyers and is continuously maintained to ensure it is compliant with English and Welsh laws.
What template do I need to vary the terms of an agreement?
If you are looking to vary the terms of an existing agreement rather than assign a party's rights to another party, you will need a deed of variation template.
A deed of variation allows parties to modify or alter the terms of an agreement without fully replacing it. This document is particularly useful when circumstances change, and the original terms of the agreement need to be adjusted to accommodate new requirements or preferences.
If you need to vary the terms of an agreement, check out our deed of variation template.
What is a deed?
Deed vs contract: A deed is a written document that must be signed and witnessed, or signed by two directors. A deed does not require consideration, e.g. the exchange of money for value, in order to still be legally binding. In contrast, in order to bring legal effect to a contract, the parties to the contract must exchange consideration (i.e. money or other value), and if it is not considered sufficient, the contract could be found to be invalid under English law.
What if there is no consideration: Where the rights and benefits to an agreement are being assigned from one party to another, often there is no additional consideration to the original agreement being assigned and the requirements for a contract formation cannot therefore be met. In these circumstances, the act of using a deed will ensure that the assignment is still binding, even where no consideration is being provided. The deed of assignment template, therefore, overcomes any issues with no consideration, and still allows for an agreement to be assigned.
This deed of assignment template assumes that both parties are businesses incorporated in the UK.
Key features of this deed of assignment template
Key terms: This template includes the following key provisions:
- Assignment;
- Warranties and representations (if applicable);
- Indemnity (again, this section is optional and only needs to be included if it applies to your situation - for more information about warranties and indemnities, check out these FAQs);
- Notice of the assignment;
- Third party rights; and
- Governing law and dispute resolution.
Why Docue?
Simple: With Docue, you can create a top-quality document in minutes using this deed of assignment template. Each template includes model clauses designed by business lawyers to help you draft the agreement and tailor it to your needs. Our template bank of 130+ lawyer-drafted templates covers a wide range of business scenarios to suit your needs.
Safe: Once you have created a deed that is tailored to your needs, you can send the finalised document to the other party for e-signing. After the deed is signed, you can store the deed in Docue Drive, to ensure you always have quick and easy access to your contracts in one place.
Affordable: Our pricing is cost-effective and transparent, with tiered plans that are designed to suit your business.
Tags: deed of assignment template, deed of assignment of agreement, assignment agreement, assignment agreement template, contract amendment
