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Assignment Clause

Controls whether and how a party may transfer its rights or obligations under the contract to a third party.

What it is

An assignment clause states whether a party may transfer its contractual rights (assignment / cessie) or its whole position (contract takeover) to another, and on what conditions, typically the other party's consent. Under Dutch law, assignment of claims follows BW 3:94 and contract takeover requires BW 6:159 cooperation.

Why it matters

A party usually wants to know and approve who it is dealing with. Restricting assignment prevents the contract ending up with an unwanted or less creditworthy counterparty, while a no-assignment clause can even make a purported transfer ineffective against the debtor.

How to apply it

  • State whether assignment is prohibited, allowed with consent, or free.
  • Distinguish assignment of rights (cessie) from full contract takeover.
  • Allow assignment to group companies or on a sale of business if useful.
  • For a binding no-assignment effect on claims, use the BW 3:83(2) goederenrechtelijke wording.

Negotiation tips

  • • Seek a carve-out so you can freely assign to affiliates or on a M&A exit.
  • • Make consent "not to be unreasonably withheld" to avoid a hard veto.

Common pitfalls

  • • Assuming a contractual ban automatically blocks a transfer of claims; the wording must be goederenrechtelijk.
  • • Confusing assignment of rights with delegation of obligations, which needs the other party's cooperation.

Legal references

Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.

Frequently asked questions

Common questions about this clause.

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