The right to assign a contract is the right to transfer that contract to someone else. This provision can be found in credit card agreements, real estate transactions and other agreements that involve an exchange of money. When the seller has the right to assign, he or she can transfer the power to enforce the contract to anyone of his or her choosing. This can be problematic because a buyer enters into a contract with a specific seller. When the seller transfers the power of the contract to someone else, the buyer is now legally bound to someone that they did not choose.
Example: When Amy signed a loan agreement with her bank, the contract gave the right to assign to the bank. When Amy’s bank was bought by a different bank, her old bank transferred its power to enforce the agreement over to the new bank, which now has a legal relationship with Amy.
Sample – Cable TV Provider:
We may assign your account or this Agreement and all rights and/or obligations hereunder to any third party without notice for any purpose, including, without limitation, collection of unpaid amounts, or in the event of an acquisition, corporate reorganization, merger or sale of substantially all of the party’s assets to another entity. You hereby consent to such assignment. You must continue making all required payments to us in accordance with your billing statement, unless notified otherwise.