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An Assignment of Contract happens when one party transfers their rights and obligations under a contract to someone else. In Indonesia, this common business practice lets companies hand over their contractual positions to other parties, following rules set out in the Indonesian Civil Code (KUHPerdata) Articles 1317 and 1318.

To be valid under Indonesian law, the original contract must allow for assignment, and all parties need to agree to the transfer in writing. Banks often use assignments when selling loan portfolios, and construction companies frequently assign contracts to transfer project responsibilities. The original party usually stays liable unless specifically released by the contract.

Consider using an Assignment of Contract when your business needs to transfer contractual rights and obligations to another party. This commonly happens during company mergers, when selling parts of your business, or if you need another company to take over project responsibilities in Indonesia's dynamic business environment.

Banks and property developers frequently use assignments to transfer loan agreements or development contracts. The document proves especially valuable when restructuring operations, entering joint ventures, or when your company lacks resources to fulfill contract obligations. Under Indonesian law, getting this agreement in writing protects all parties and ensures a smooth transition of responsibilities.

• Debt Assignment Agreement: Used to transfer debt obligations and collection rights between parties, common in banking and finance sectors
• Assignment Agreement Intellectual Property: Transfers ownership of patents, trademarks, or copyrights, essential for tech companies and creative industries
• Security Assignment Agreement: Transfers rights to financial securities or collateral, typically used in lending and investment transactions
• Tripartite Assignment Agreement: Involves three parties in the transfer, often used in complex business restructuring or project handovers

• Business Owners & Companies: Act as assignors when transferring contracts during mergers, acquisitions, or business restructuring
• Banks & Financial Institutions: Use assignments to transfer loan agreements, credit facilities, or debt portfolios
• Legal Counsel: Draft and review assignments to ensure compliance with Indonesian Civil Code requirements
• Corporate Secretaries: Manage documentation and maintain records of contract assignments
• Notaries: Authenticate and witness assignment agreements as required by Indonesian law
• Government Regulators: Oversee assignments in regulated industries like banking, insurance, and real estate

• Original Contract Review: Gather the complete original contract and verify it allows for assignment
• Party Details: Collect legal names, addresses, and registration numbers of all parties involved
• Scope Definition: Clearly outline which rights and obligations will be transferred
• Consent Requirements: Obtain written approval from the non-assigning party as required by Indonesian law
• Payment Terms: Document any consideration paid for the assignment
• Effective Date: Specify when the transfer takes effect
• Supporting Documents: Prepare company registration certificates and board approvals
• Notarization Plans: Arrange for notarial deed if required by original contract terms

• Identification Section: Full legal names, addresses, and registration numbers of assignor, assignee, and other parties
• Contract Reference: Details of the original contract being assigned, including date and parties
• Assignment Scope: Clear description of rights and obligations being transferred
• Consideration Clause: Statement of payment or value exchanged for the assignment
• Effective Date: Specific timing of when the transfer takes effect
• Consent Statement: Written approval from the non-assigning party as per KUHPerdata
• Governing Law: Reference to Indonesian law and jurisdiction
• Signatures: Execution blocks for all parties and witnesses

An Assignment of Contract differs significantly from an Addendum to Contract. While both modify existing agreements, they serve distinctly different purposes under Indonesian law.

• Purpose: Assignment transfers rights and obligations to a new party, while an addendum modifies terms between existing parties
• Legal Effect: Assignment creates a new contractual relationship with the assignee, whereas an addendum merely updates the original contract
• Party Changes: Assignment introduces a new party and potentially releases the original party; addendums keep original parties intact
• Timing Impact: Assignment typically marks a clear transition point, while addendums maintain continuous contract flow
• Consent Requirements: Assignment usually needs explicit consent from all parties under Indonesian Civil Code; addendums only need original parties' agreement