To enable growth while managing risk for the assignment rights provision in a contract, apply the following approach
Simply, assignment rights are about working with transparency.
How do I talk about transparency?
“We may need to regroup if our fundamental assumptions about who is doing the work change. There are risks with this engagement that need to be actively managed to prevent outsized losses. If they are not actively managed, we will need economic assurances against those losses.”
How do I act on this?
Use these 5 key negotiation points
- Scope of assignment rights
- Allowed exceptions
- Notice and consent requirements
- Assignments to competitors terms
- Post assignment obligations