Assignment & Subcontracting – Free Document (Z143)

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It is usual for parties to have a contract to determine whether they will permit each other to assign their respective rights or transfer their respective obligations to third parties; in the absence of any specific provision in the contract, the usual rule is that whilst it may be permissible for a party to assign its rights under a contract, it is not permissible for that party to transfer its obligations under a contract to a third party without the consent of the other members of the agreement.

This free guidance document gives information on this process and is useful to contractors in the construction industry.

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Explanatory Notes

It is usual for parties to have a contract to determine whether they will permit each other to assign their respective rights or transfer their respective obligations to third parties;  in the absence of any specific provision in the contract, the usual rule is that whilst it may be permissible for a party to assign its rights under a contract, it is not permissible for that party to transfer its obligations under a contract to a third party without the consent of the other members of the agreement.