An assignment of contract is a legal process where a party to an existing contract hands over his/her obligations regarding the contract to another party. In essence, it is the process of switching one party in a contract setting with another. There are many reasons why this might be necessary, including situations where the assignor is unable to fulfil their contractual obligations, such as due to illness.
There are many factors that affect the legality of an assignment of contract, and these have to be taken into account before and during the process. For one, the other party or parties to the contract have to be furnished with clear information regarding the change effected by the assignment of contract. Failure to do so may be deemed as a breach of contract.
The initial terms of the contract also have to be scrutinized for any bottlenecks that could make an assignment of contract impossible. In some cases, the contract terms can outright prohibit assignment of contract. In such cases, the only leeway one has to obtain an assignment of contract would be to renegotiate the contract terms with all the other involved parties.
If the assignment results in a change of some of the terms or performance of the contract, then it may also be challenged in court and deemed to be illegal. An example of this is when the assignment results in a reduction of the anticipated returns, or increases the risks of the other parties to the contracts. Finally, the assignment should not violate any public policies or laws that may affect the contract, either in federal or state governments.