Legal Question in Business Law in California

Re: When selling an active contract would you use a ''asset'' or ''goods'' bill

You first need to look at the terms of the contract...whether you can assume the contract...and then need to get as assignment. Please take a look at my site at www.lawyers.com/amyghosh

Re: When selling an active contract would you use a ''asset'' or ''goods'' bill

You would need an assignment of contract form, though I don't know whether there is a standard assignment form you can use. There is so much variation between individual contracts that it would be very difficult to prepare a one-size-fits-all form. You will probably need to have one customized for your situation.

Also, you will need to make sure that the services contract is actually assignable. Most are, but if the contract specifically says that it isn't then it isn't. Also, contracts which make use of the specific talents of a particular person or group of people are not assignable because there is no way to know whether the assignee's talents will measure up. For example, if you pay Tony Bennett to sing at an event then you want Tony Bennett and not somebody who purchased your contract from him. On the other hand, if you paid a lawn service to mow your front yard you probably wouldn't care who did the actual mowing, as long as the job was done right.

It usually isn't hard to decide whether a given contract is assignable, but sometimes the argument can be made either way. It might be a good investment to have an attorney review the contract you want to purchase and draft the assignment for you.