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Assignment of Contract Rights

A completed assignment of payment and licence rights under a supply contract, with consent where required and a clear distinction between assignment and novation.

Jurisdiction: England and Wales - completed fictional worked example

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# ASSIGNMENT OF CONTRACT RIGHTS

Date: 17 June 2029

Parties: Wessex Components Limited, Beacon Mobility Limited and Elm Finance LLP

## 1. Parties and purpose

Wessex Components Limited (Company No. 08650114), 7 Avon Road, Bristol BS2 0SP (Assignor), assigns to Elm Finance LLP (OC447812), 3 Temple Row, Birmingham B2 5DP (Assignee), the assigned rights under its Supply Agreement with Beacon Mobility Limited (Company No. 06211877), 80 Victoria Street, Coventry CV1 3PJ (Customer).

## 2. Scope, price and subject

The assigned rights are the right to receive £18,750 monthly invoices, late-payment interest and enforcement costs, and the non-exclusive licence to use the contract's delivery forecasts for collection administration. The assignment takes effect on 1 July 2029 for rights arising on or after that date; Wessex keeps all earlier receivables.

## 3. Operating duties

Elm pays Wessex £210,000 by same-day BACS on signing. Wessex must deliver the original agreement, schedules, invoices and correspondence and warrants that it has not previously assigned or charged these rights. Beacon's written consent to this assignment is attached; no consent is implied for any other transfer.

## 4. Rights, records and compliance

Wessex remains responsible for manufacturing, delivery, warranty and every other obligation. Elm cannot purport to become a supplier or alter Beacon's bargain. If the parties intend to transfer obligations, release Wessex or substitute Elm, they must execute a separate deed of novation signed by all three parties.

## 5. Term, ending and remedies

Wessex will notify Beacon by signed-for post and email on 18 June 2029, and Beacon must pay future invoices only to Elm's nominated account after receipt. Elm keeps collection records and provides a quarterly statement; Wessex may inspect relevant records on ten Business Days' notice. Personal data is transferred only as necessary under UK GDPR.

## 6. Liability and reservations

A material breach, insolvency or unlawful onward transfer permits the non-defaulting party to seek an injunction, damages and termination of the assignment. Elm bears post-effective-date collection risk, but Wessex indemnifies Elm for loss caused by a pre-existing defence, prior charge or breach of its warranties.

## 7. Governing law and signatures

This deed is governed by the law of England and Wales, with exclusive jurisdiction of its courts. It is executed as a deed by Wessex and Elm before witnesses; Beacon's authorised director signs the attached consent on 17 June 2029. No assignment of the contract's burdens occurs merely by this document.

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