ASSIGNABLE CONTRACT Meaning and
Definition
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An assignable contract is a legally binding agreement between two parties that can be transferred or assigned to a third party. In this type of contract, the rights and obligations outlined in the initial agreement can be transferred to another party without requiring the consent or approval of the original contracting parties.
Typically, for a contract to be assignable, it must not contain any specific provisions that prohibit or restrict assignment. The ability to assign a contract can provide flexibility and opportunities for parties involved, as it allows them to transfer their rights or obligations to another party for various reasons, such as financial or strategic considerations.
When a contract is assignable, the original party who has assigned the contract (assignor) transfers their rights and obligations to a new party (assignee). Once the assignment is complete, the assignee assumes all the responsibilities and benefits outlined in the initial contract. The assignor, however, may retain the secondary liability for any breach of contract by the assignee, unless a novation occurs, which would release the assignor from any further obligations.
It is important to note that an assignable contract differs from a non-assignable contract, which explicitly prohibits or restricts any form of assignment. Contracts may include provisions that require the consent of the other party before assignment can take place or may specify restrictions on the types of parties to whom assignment is allowed.
Overall, an assignable contract allows for the transfer of rights and obligations from one party to another, providing flexibility and potential benefits for the parties involved.
Etymology of ASSIGNABLE CONTRACT
The word "assignable" originated from the Latin word "assignare", which means "to assign" or "to allot". The term "contract" can be traced back to the Latin word "constractus", meaning "drawn together" or "drawn up".
In the legal context, the term "assignable contract" is used to refer to a contract that can be transferred or assigned to another party. The etymology of the phrase essentially combines the meaning of assigning or transferring rights or obligations with the concept of a formal agreement or contract.
Similar spelling word for ASSIGNABLE CONTRACT
