Both clauses can have the effect of preventing, allowing, or making conditional, a transfer to another party.
It is important to remember that this article only touches on the assignment of a contract itself and not the assignment of intellectual property, which usually warrants its own separate contract.
If not all of the requirements have been met, the assignment will still be valid.
However, the assignee will not be able to sue the other party to the contract directly.
You should therefore check whether it contains any clauses providing for conditions on novation before proceeding.
Here is a sample restriction of novation clause (which also happens to restrict assignment): “A party must not assign or novate this agreement or otherwise deal with the benefit of it or a right under it, or purport to do so, without the prior written consent of each other party which consent may be withheld at the absolute discretion of the party from whom consent is sought.” Requirements for novation A novation can be executed formally by way of a written agreement or by deed.
It is not possible to assign individual projects within a product order. The Assignor is the Approved Vendor that already holds the product order(s) and wishes to initiate assignment, while the Assignee is the Approved Vendor that will receive the assignment. Note that an Approved Vendor may, without consent, collaterally assign or pledge the revenue stream of a REC contract or product order(s), or collaterally assign the REC contract itself, in conjunction with financing or other financial arrangements.
The Approved Vendor must provide notice to the Program Administrator and Buyer of such a collateral assignment or pledge, including the identity and contact information of the financing party obtaining collateral rights.
As explained in the REC contract, assignments may be subject to fees, and may in certain circumstances require the Buyer’s consent to be effectuated.
An entire REC contract or any product orders/batches under a contract may be assigned in their entirety.