For assignment to be effective, it must occur in the present.No specific language is required to make such an assignment, but the assignor must make some clear statement of intent to assign clearly identified contractual rights to the assignee.
A contract may contain a non-assignment clause, which prohibits the assignment of specific rights and some various rights, or of the entire contract, to another.
However, such a clause does not necessarily destroy the power of either party to make an assignment.
A related concept of assignment is novation wherein, by agreement with all parties, one contracting party is replaced by a new party.
While novation requires the consent of all parties, assignment needs no consent from other non-assigning parties.
The common law favors the freedom of assignment, so an assignment will generally be permitted unless there is an express prohibition against assignment in the contract.
Where assignment is thus permitted, the assignor need not consult the other party to the contract."The Forms Professionals Trust ™ "I ordered some Real Estate forms online and as a result of my error, I placed the order twice.This morning I called Customer Service and Vern immediately credited back my Visa the extra amount.An assignment cannot have any effect on the duties of the other party to the contract, nor can it reduce the possibility of the other party receiving full performance of the same quality.Certain kinds of performance, therefore, cannot be assigned, because they create a unique relationship between the parties to the contract.A promise to assign in the future has no legal effect.Although this prevents a party from assigning the benefits of a contract that has not yet been made, a court of equity may enforce such an assignment where an established economic relationship between the assignor and the assignee raised an expectation that the assignee would indeed form the appropriate contract in the future.However, it is possible to assign the lease, but the new party (assignee) will be subject to the lessor’s credit evaluation process and approval.Even if the assignee is approved, the existing lessee’s (assignor’s) personal guarantee(s), if any, might not be released unless the assignee’s credit stature is extremely strong.Equipment Lease Agreements typically contain language prohibiting the lessee from assigning the lease to a third party.For example, "You have no right to sell, transfer, assign, sublease, or encumber the equipment or this agreement" protects the Lessor’s collateral and credit underwriting guidelines in the event the lessee ever wants to transfer the lease to another party.