Assignment & Novation
Read Net Lawman's explanation about the difference between assignment and novation:
"Novation and assignment are ways to transfer an interest in a contract to another party else. A common misconception is that novating is the same as cancelling the original contract and creating a new one. In actual fact, it is simply changing the parties to the contract. In most cases, novation is an easier option than cancelling and drawing new agreements.The consent of all three parties - the transferee, the transferor and the other contracting party - is required to effect any novation.
Whilst the difference between assignment and novation is relatively small, it is an essential one. Assigning when you should novate could leave you in a position of being liable for your original contract when the other party is not liable to perform his obligations. In legal terminology, assigning means transferring contractual rights and obligations to a someone not a party to the original agreement, without the consent of the other original party. Contracts are assigned when the agreement of one of the parties to the original contract cannot easily be obtained, or where the original agreement allows transfer without the consent.
Assignment is most commonly used when a large number of contracts are transferred from one business to another, for example when a telephone service provider sells its UK contracts or a white goods retailer sells its maintenance contracts.
If you aren't sure whether to novate or assign, this article explains the difference."
Read what Net Lawman says about its templates:
"These agreements change the parties to a contract, transferring the benefits and obligations to another business or individual.
Our agreements have been drawn for common situations such as transfer of customer contracts on business sale, or the transfer of a life insurance policy."
Template: Assignment Agreement
Read what Net Lawman says about this template:
"This template is for the transfer or assignment of contracts between two parties. It can be used to transfer a wide range of contracts, but is most commonly used to assign customer contracts to the buyer of a business, either where novation is impractical, or where the original contracts allow assignment. Also included with the agreement is a letter template to customers informing them of the transfer.
Template: Deed of Assignment: life insurance policy or endowment policy
Read what Net Lawman says about this template:
"This deed transfers the rights in an endowment or insurance policy to some other person or company, for money or value. It is suitable in a situation other than divorce. We include reasonable warranties by the seller and undertakings by the buyer. It is clear and simple, but thorough and complete for an arm’s length transaction."
Template: Deed of Assignment: life or endowment policy on divorce
Read what Net Lawman says about this template:
"This deed transfers the rights to a policy to your former spouse or partner. Use by agreement or by order of the Court. The transfer will be complete and valid only when the insurer has been formally notified. As well as the deed document, we have included a template notice for that purpose."
Template: Deed of Assignment: life or endowment policy by trustees
Read what Net Lawman says about this template:
"This deed transfers an endowment or other life assurance policy from trustees to beneficiary. It includes a notice to the insurer that the policy has been transferred. For technical legal reasons, all assignments of life policies must be by deed and not by contract. From a practical point of view, that means that a deed requires a witness to the signatures. Unless it is more convenient to do otherwise, the same witness can verify the signatures of both parties."
Template: Novation Agreement: transfer debt to new debtor
Read what Net Lawman says about this template:
"Transfer a debt obligation from one party to another with the creditor's permission, for example when restructuring or when selling a business and its obligations. This is an easy to use, effective agreement. Use this agreement to change who will repay a debt. Common uses are when a business is sold and the purchaser takes on the liabilities of the seller, or when restructuring debt (a third party buys the obligation to repay a loan and interest)."
Template: Novation Agreement: transfer of service contract
Read what Net Lawman says about this template:
"Transfer a service contract between customers using this easy to use and effective agreement. The most common use would be when the ownership of a business changes. This is a simple yet comprehensive agreement that can be used to novate any service contract with only minimal editing. It ensures continuity when the party receiving the service changes."
Template: Novation Agreement: transfer debt to new creditor
Read what Net Lawman says about this template:
"Transfer the right to receive a debt repayment from creditor to his transferee. Common uses would be one-off transfer, or when factoring debt (buying the debts or loans owed to the seller) or when buying a business that has extended credit to customers. This is an easy to use, effective agreement. "
Template: Novation Agreement: transfer of architectural or building contract
Read what Net Lawman says about this template:
"Easy to use novation agreement for use where the customer of an architectural or construction contract changes part-way through the project (e.g. where the land and part-completed buildings are sold). Use this agreement to transfer a contract for the design or build of a property to the purchaser on the sale of land. It can be used with any building contract, usually with only minimal editing."
Detailed guidance notes are provided with each template. Net Lawman offers a money back guarantee if the document is not what you need, as well as a legal review option if you want some professional assistance when you are drawing up your documents.
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