What is Assignment Clause?
Definition
An assignment clause controls whether either party can transfer their rights or obligations under the contract to a third party. This is critical because, without restrictions, the company you signed with could sell or transfer your contract to an entirely different organization without your knowledge or consent. The new party may have different standards, different payment practices, or different expectations. For example, if your freelance contract with a marketing agency has no assignment restriction, that agency could be acquired and your contract handed off to the new parent company, binding you to work for people you never agreed to work with. Watch for one-sided assignment clauses that let the other party assign freely while prohibiting you from doing the same. A balanced clause requires written consent from both sides before any assignment takes effect.
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