Restriction upon Assignment Clause Samples

A Restriction upon Assignment clause limits or prohibits a party’s ability to transfer its rights or obligations under a contract to another party without prior consent. Typically, this means that neither party can assign the agreement or delegate their duties to a third party unless the other party agrees in writing, and it may specify exceptions such as assignments to affiliates or in connection with a merger. The core function of this clause is to ensure that each party maintains control over who they are contractually bound to, thereby preventing unwanted or unknown third parties from entering the contractual relationship and protecting the original parties’ interests.