Assignment of Contract Template for Nigeria

An Assignment of Contract happens when one party transfers their rights and obligations under a contract to someone else. In Nigeria, this common business practice lets companies or individuals step into each other's shoes in existing agreements, following rules set by the Contract Laws of the Federation.

The assignment must be in writing and typically needs consent from other parties involved in the original contract. Nigerian courts enforce these transfers when properly documented and signed, making them vital tools for business restructuring, debt collection, and project handovers. However, personal service contracts or agreements specifically prohibiting assignment can't be transferred this way.

Use an Assignment of Contract when transferring your contractual rights and duties to another party in Nigeria. This commonly happens during business sales, when outsourcing major projects, or if your company needs to delegate contract responsibilities to a subsidiary or partner organization.

The arrangement works particularly well for property leases, construction agreements, and supply contracts. For example, a building contractor might assign their contract to another qualified builder, or a business might transfer their office lease to a new tenant. Just remember that Nigerian law requires written documentation and often the original contract partner's approval.

• Full Assignment: Transfers all contract rights and obligations to the new party, common in business sales or complete project handovers in Nigeria
• Partial Assignment: Transfers only specific rights or duties while the original party retains others - useful for delegating particular tasks or revenue streams
• Conditional Assignment: Takes effect only when certain conditions are met, often used in construction projects or phased business transitions
• Security Assignment: Used as collateral for loans, where contract rights are assigned to lenders as security
• Novation-Style Assignment: Creates a complete substitution of parties, requiring all parties' consent under Nigerian contract law

• Business Owners: Often initiate Assignment of Contract when selling their company or transferring business obligations
• Corporate Lawyers: Draft and review assignments to ensure compliance with Nigerian contract laws and protect client interests
• Property Developers: Use assignments to transfer construction contracts or lease agreements to other parties
• Financial Institutions: Accept contract assignments as security for loans or during debt restructuring
• Government Agencies: Oversee and approve assignments involving public contracts or regulated industries
• Project Managers: Coordinate assignment processes when transferring project responsibilities to new contractors

• Original Contract Details: Gather the complete original agreement, including all amendments and parties involved
• Party Information: Collect full legal names, addresses, and registration details of all current and new parties
• Assignment Scope: Define exactly which rights and obligations will transfer to the new party
• Consent Requirements: Check if the original contract requires approval for assignment from other parties
• Payment Terms: Document any financial considerations for the assignment transfer
• Effective Date: Specify when the assignment takes effect and any transition arrangements
• Documentation: Prepare supporting documents like company resolutions authorizing the assignment

• Identification Section: Full legal names and addresses of all parties, including the original contract details
• Assignment Clause: Clear statement transferring specific rights and obligations from assignor to assignee
• Consideration: Statement of value exchanged to make the assignment legally binding under Nigerian law
• Effective Date: Precise timing of when the transfer takes effect
• Consent Declaration: Written approval from the original contract parties if required
• Warranties: Assurances about the assignor's right to transfer the contract
• Governing Law: Statement specifying Nigerian law as the controlling jurisdiction
• Execution Block: Signature spaces for all parties with proper witnessing provisions

An Assignment of Contract differs significantly from an Contract Amendment in both purpose and effect under Nigerian law. While both modify existing contracts, they serve fundamentally different functions.

• Transfer vs. Modification: Assignment transfers rights and obligations to a new party, while amendments change specific terms while keeping original parties
• Party Involvement: Assignments introduce a new party (assignee) who takes over responsibilities, whereas amendments only affect existing parties
• Scope of Change: Assignments maintain the original contract terms but change who performs them; amendments alter the actual terms and conditions
• Legal Requirements: Assignments often need specific consent clauses and may face restrictions on personal service contracts; amendments typically require simpler mutual agreement
• Documentation: Assignments create a new agreement between assignor and assignee, while amendments typically appear as addenda to the original contract