What Is A Deed of Assignment, Anyway?

In any business, contracts are ubiquitous — from your customers to suppliers, contractors, employees, graphic designers and even your monthly subscriptions!

However, contracts are generally signed between two parties.

So, what happens if one party wishes to transfer or assign their rights and obligations under a contract to another party?

This is where a Deed of Assignment comes into play.

What Is A Deed?

In the legal realm, there are two primary types of legal documents: agreements and deeds.

Agreements are generally the most common form of contracts you’ll encounter. However, deeds operate somewhat differently.

Essentially, a deed must be physically signed and witnessed in person. This means that it can be challenging to execute deeds with international parties.

Therefore, it’s crucial to understand that a deed has specific requirements for execution within New Zealand.

What Is A Deed of Assignment?

A Deed of Assignment is a legal document that transfers or assigns the legal rights and obligations to another party.

And it varies depending on your situation.

For instance, an assignment could be applicable for straightforward matters like intellectual property. When a graphic designer creates a logo for you, you might want to ensure that logo is owned by you. In this case, the graphic designer would “assign” the copyright to you.

Or, if you’re selling your business, you might wish to transfer your contractual relationships to the purchaser. For example, if you have existing contracts with suppliers for your café business, you might consider transferring these to the buyer. Here, you’d sign a Deed of Assignment to transfer the rights and obligations of that contract to the new owner of your business.

A Deed of Assignment ensures that you no longer have continuing obligations and rights as a signatory to that contract. The last thing you want is to be liable or accountable for a contract you neglected to assign to someone else.

Need Help?

If you need assistance drafting a Deed of Assignment, let’s have a conversation!

You can reach out to our amiable team on 0800 002 184 or [email protected] for a free, no-obligations consultation about your specific situation and the legal documents that are suitable for you.

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