Assignment

Typical wording

The customer may not assign its rights without the supplier's written consent. The supplier may assign the agreement freely on a merger or sale of business.

What it means

You cannot move the agreement to another company without permission, but the other party can do so without asking you.

Common practice

A consent requirement is common. Balanced practice is that both parties may assign within their group or on a transfer of business, with notice.

What to look for

• Is the right to assign mutual?
• Can you move the agreement to a sister company on a reorganisation?
• Are you notified if the other party changes owner?
• Can you terminate if the agreement is assigned to a competitor?

Source