Legal Q&A: Assignment

摘要

ASSIGNMENT is a process which allows rights to be transferred from one party to another. This is different from the concept of novation which allows the transfer of both rights and obligations. It is common for the termination mechanism in a building contract to require the contractor to assign rights under subcontractor to the employer in a contractor default termination. The Joint Contracts Tribunal (JCT) states that following termination as a result of contractor default, the contractor shall: "If so required by the employer within 14 days of termination, assign (so far as assignable and so far as it may lawfully be required to do so) to the employer, without charge, the benefit of any agreement for the supply of materials or goods and/or for the execution of any work for the purposes of the contract."