What is Nonassignability in Contracts?

Nonassignability refers to a provision in a contract or agreement that prohibits the transfer or assignment of rights and obligations under the agreement to another party. This means that the original party to the agreement cannot transfer their rights and obligations to someone else without the consent of the other party.

For example, a lease agreement may include a nonassignability clause that prohibits the lessee from assigning or subleasing the property to anyone else without the landlord's prior written approval. This ensures that the landlord has control over who is using the property and can prevent any unauthorized use or transfer of the property.

In business, nonassignability clauses are commonly used in contracts for services, intellectual property licenses, and other types of agreements where the original party wants to ensure that the rights and obligations under the agreement are not transferred to someone else without their consent.