Assignment and Assumption Agreements in Florida
An assignment and assumption agreement combines the transfer of contractual rights with the express acceptance of contractual obligations by the assignee. In Florida, this document ensures that both the benefits and burdens of a contract transfer to the new party.
Why Both Elements Matter
An assignment alone transfers only rights. Without an express assumption, the assignee receives benefits but has no contractual obligation to perform. The assumption component binds the assignee to the transferred duties, giving the obligor a direct claim against the assignee for non-performance. This is essential in Florida commercial lease transfers, business acquisitions, and loan assumptions.
Consent Requirements
Most Florida commercial agreements require the non-assigning party's consent before an assignment and assumption is effective. The consent document should confirm that the obligor recognizes the assignee as the new party, acknowledges the assumption of obligations, and states whether the original assignor is released from future liability. Without a release, the assignor remains liable as a guarantor of the assignee's performance.
Related Terms
Barnes Walker Business Law
Barnes Walker drafts assignment and assumption agreements for Florida business transactions. Contact us for contract guidance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC