Assignment

An assignment clause controls whether either party can hand its rights and duties under the contract to a third party. Many contracts restrict assignment without the other side's consent, so that you are not suddenly bound to a company you never chose to do business with.

Assignment often comes up during acquisitions: when a company is bought, its contracts may need to be assigned to the buyer. A common carve-out allows assignment to a successor in connection with a merger or sale of all assets without consent, while otherwise requiring it. Read this clause before assuming a contract moves with a deal.