Assignment and Novation of Liabilities Sample Clauses

The 'Assignment and Novation of Liabilities' clause governs how a party may transfer its obligations or rights under a contract to another party. Typically, this clause outlines the conditions under which such transfers are permitted, such as requiring the consent of the other original party or specifying procedures for notification. For example, if one company sells part of its business, this clause would dictate how its contractual duties and benefits can be assigned to the buyer. Its core function is to ensure that all parties are aware of and agree to any changes in who is responsible for fulfilling contractual obligations, thereby preventing disputes and maintaining contractual clarity.