What is an assignment agreement and when to use it

An assignment agreement transfers a claim from the original creditor (assignor) to a new creditor (assignee).
The debtor remains the same – only the creditor changes.

Common use cases:

• selling receivables between companies

• transferring debts in M&A deals

• assigning unpaid invoices

• reallocating internal group debts

Legal framework

Regulated by Sections 1879–1895 of the Czech Civil Code.
Debtor’s consent is not required, but the debtor must be notified – otherwise payment to the assignor may still be valid.

Key elements of an assignment agreement

• Parties (assignor and assignee)

• Clear description of the claim (debtor, amount, reason)

• Terms of transfer (price or free of charge)

• Warranties on existence and enforceability

• Notice obligation to the debtor

• Signatures and date

Common mistakes

• No notice to the debtor → risk of mispayment

• Unclear or vague claim description

• No clause on accessories (interest, penalties)

• No warranty on validity of claim

• Assigning an already paid or time-barred claim

Recommendations

Assignor:

• Specify all components of the claim (principal + accessories)

• Notify the debtor in writing

Assignee:

• Ask for confirmation that the claim is real and valid

• Secure a warranty from the assignor

Practice tip

A well-drafted assignment prevents future disputes.
If selling debts, include confirmation of amount, due date and basis of the claim.

Assignment agreement template – available for a symbolic fee

I offer a basic Czech-English template for assignment of receivables.

Suitable for B2B transfers, loans, and legal enforcement.

Contact me via e-mail or form – quick and simple solution.

FINAL THOUGHTS – WHAT NOW?

An assignment agreement isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting. I am a specialist on contract law – more information here.