Assignment is a financial process in which a person or a company assigns his assets or property in order to get out of debt. Assignment is also known as factoring in which a debtor gives away his property or assets and ask the assignee to pay off his creditors. For those who don’t want to go through bankruptcy, factoring or assigning is the best available option.
Introduction to the Notice of Assignment:
When a company or an individual assigns his debt, his property or his assets to a third party, it is legally required that the assigner informs his creditors or debtors about the change of the situation in order to give them enough time to react and prepare themselves. This is a formal notice or letter in which either the assigner or the assignee informs the debtors or creditors about the change of the business. Whether the assigner writes this notice or the assignee sends it, the most important element of this notice is to inform the receivers about the change and to advice them to contact the obligated party and redirect their queries to the assignee according to the assignment.
Alternative to the Notice of Assignment:
Many people want to know if it is possible to keep the assignment secret from their clients i.e. debtors or creditors but you should understand that it is required be the law that when a debtor or a creditor assigns his accounts payable or receivable to a third party, he has to inform his clients about the change of the situation or else, legal action will be taken against him. An alternate for this notice not to be sent is only possible for big corporations and multinational or international organizations that fulfill a certain criteria and other than that, all the assigners are legally required to inform their clients. Even if the assigners don’t inform their clients and customers about the change, the assignee has to contact to these clients and customers at some point and ask them to redirect their payments and queries towards the assignee. This is why it is better that as soon you go through the process of assignment, you send this notice to your creditors or debtors and ask them to contact the new assignee and direct their payments to him.
Key elements to include in the Notice of Assignment:
- Name of the person who is assigning his assets or property to a third party i.e. assigner with complete address
- Name of the third party who has been assigned with property or assets i.e. assignee with complete address
- Date when the notice of assignment is being sent to the receivers
- Reasons of assigning the assets or property to the assignee as explained by the assigner (not necessary)
- Date from which the receivers are advised to redirect their queries and payments to the assignee
- Duration of assignment or expiration of the assignment (if applicable)
- Details of responsibilities, rights and obligations of the assignee towards the receivers of the notice
- Signature of the sender of the notice i.e. assigner or assignee
Here is preview of a Free Sample Sample Notice of Assignment created as fillable PDF Form,
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Free Notice of Assignment of Contract
This Notice of Assignment of Contract will serve as official notice that all rights and interests under a certain contract have been permanently assigned to another. This Notice of Assignment also sets out the parties to the contract and the date of assignment.
Disclaimer:This was not drafted by an attorney & should not be used as a legal document.
Notice of Assignment of Contract
Date: ______________, 20 ____
Re: Assignment of Contract
Please be advised that as of ____________________, 20 ______, all interest and rights under certain contract dated __________________________ entered into between _______________________, of _______________________________________ and ________________________of _______________________________________, will be permanently assigned to ________________________________,of __________________________________________.
Please be advised that because of the proposed assignment all of the obligations and rights of the former party to this contract are now the responsibility of the new party to this contract.