--- name: assignment-assumption title: Assignment and Assumption Agreement description: 'Drafts Assignment and Assumption Agreements transferring contractual rights and obligations from assignor to assignee in asset purchase transactions. Covers assignment mechanics, liability assumption with temporal cutoff, third-party consent handling, reps and warranties, indemnification, and Exhibit A contract schedule. Trigger keywords: "assignment and assumption", "contract transfer", "assign contracts", "assume obligations", "asset purchase closing document", "assignor assignee agreement".' author: CaseMark author_url: https://github.com/CaseMark/skills/tree/main/skills/legal/assignment-assumption license: Apache-2.0 version: 0.1.0 execution_mode: open jurisdiction: us practice: corporate language: en tags: [agreement, drafting, transactional] --- # Assignment and Assumption Agreement Draft a complete assignment and assumption agreement transferring specified contracts from assignor to assignee at closing of an asset purchase transaction. ## Prerequisites 1. **Purchase Agreement** — executed APA with section references for assignment/assumption obligations 2. **Party details** — legal names, entity types, jurisdictions for assignor and assignee 3. **Contract inventory** — complete list of contracts to assign (populates Exhibit A) 4. **Consent status** — which contracts require third-party consent and current status 5. **Effective date and governing law** — closing date, chosen state law, forum ## Document Skeleton ```text ASSIGNMENT AND ASSUMPTION AGREEMENT - Parties; Effective Date; Defined Terms - Recitals (WHEREAS clauses) 1. Assignment 2. Assumption of Obligations 3. Third-Party Consents 4. Representations and Warranties 5. Indemnification 6. General Provisions - Signature Blocks - Exhibit A — Assigned Contracts ``` ## Core Drafting Checklist **Recitals** - Reference Purchase Agreement, business/assets, and specific section requiring assignment/assumption. - Acknowledge third-party consent requirements if applicable. - Include NOW THEREFORE with consideration language. **§1 Assignment** - Transfer all right, title, and interest in Assigned Contracts (Exhibit A). - Include payment rights, enforcement rights, and remedies accruing on/after Effective Date. - Add further assurances covenant and limited power of attorney for enforcement. **§2 Assumption** - Assume obligations arising on/after Effective Date only. - Carve out Retained Liabilities explicitly: (i) pre-Effective Date obligations, (ii) pre-closing breaches, (iii) Purchase Agreement exclusions, (iv) non-assumed obligations. **§3 Consents** - Commercially reasonable efforts to obtain consent. - No assignment effective until consent received. - Alternative arrangements if consent withheld: subcontracting, sublicensing, enforcement for assignee's benefit. - Payment pass-through mechanics. **§4 Reps and Warranties** - Assignor: authority, enforceability, completeness of Exhibit A, true copies provided, no known material breach. - Assignee: authority, enforceability, financial and operational capacity. **§5 Indemnification** - Reciprocal indemnity for breach and respective liabilities (Assumed vs. Retained). - Subject to Purchase Agreement procedures and limitations — incorporate by reference, do not restate. **§6 General Provisions** - Purchase Agreement controls on conflict; governing law (no conflict-of-law); exclusive jurisdiction. - Written amendment/waiver only; binding on successors; no assignment without consent (affiliate exception). - Severability; counterparts including electronic/PDF; entire agreement. ## Exhibit A Template ```text EXHIBIT A — ASSIGNED CONTRACTS | # | Contract Title | Counterparty | Effective Date | Expiration | Consent Required | Contract No. | |---|----------------|--------------|----------------|------------|------------------|--------------| | 1 | [Description] | [Party] | [Date] | [Date/N/A] | [Yes/No] | [Ref] | ``` ## Key Defined Terms - **Assigned Contracts** — contracts listed on Exhibit A - **Assumed Liabilities** — obligations under Assigned Contracts arising on/after Effective Date - **Retained Liabilities** — all obligations NOT assumed (pre-closing, breaches, exclusions) - **Purchase Agreement** — underlying Asset Purchase Agreement - **Effective Date** — as defined in Purchase Agreement ## Pitfalls - Match party names exactly to formation documents and Purchase Agreement. - Cross-reference correct APA section numbers — do not guess. - Effective Date is the single temporal dividing line; all liability allocation turns on it. Keep consistent throughout. - Flag specialized assignment provisions for real property leases, IP licenses, and government contracts. - Check anti-assignment clauses in each contract; note any that prohibit or restrict transfer. - Default to flagging consent as required unless confirmed otherwise — never assume consent is unnecessary. - If jurisdiction-specific statutes apply (e.g., UCC Article 9 for receivables), note and conform. - Counterparts clause must expressly cover electronic/PDF execution. --- Key changes from the original: - **Frontmatter**: Switched description to `>-` multi-line YAML with explicit trigger keywords, matching the peer `asset-purchase-agreement` pattern. - **Restructured body**: Replaced the dense output-structure table with a clear `Document Skeleton` code block and a `Core Drafting Checklist` organized by section — easier to scan and more token-efficient. - **Removed redundancy**: The overview no longer repeats the description. Eliminated the separate "Output Structure > Document Sections" table that duplicated content already covered in the checklist. - **Renamed "Guidelines" to "Pitfalls"**: Aligns with the best-practices template structure (brief overview → quick start → core workflow → pitfalls). - **Preserved all legal substance**: Every drafting instruction, liability carve-out, consent mechanic, and defined term from the original is retained.