Re: A Voice from the School of Hard Knocks… - Posted by JPiper
Posted by JPiper on January 16, 1999 at 12:17:43:
Evidently you misunderstood my post.
The assignment agreement is an agreement between the assignor and the assignee. This agreement has nothing to do with the original seller.
I understand that your purchase contract contains protective/release language. What your purchase contract does NOT contain is language indemnifying and holding you (the Assignor) harmless, signed and agreed to by the Assignee. As you know, it would be impossible for the Assignee to indemnify or hold you harmless via the purchase contract since the Assignee does not sign it. That?s the whole point, and why your assignment agreement should contain such language, in my opinion. Anyone not understanding the purpose of this indemnification and hold harmless language in an assignment agreement should contact their attorney.
As to the concept that the newbies here don?t have the money to buy suitable contracts I have a somewhat different theory. My theory is that if you don?t have a couple of hundred dollars to get some basic tools of the trade its too early for you to be in this business. Maybe a part time job to save a little money would be better. It?s kind of like a newbie carpenter wanting a job but doesn?t own a hammer, with the idea that he?ll get a hammer with his first paycheck. If you?re saying that this assignment agreement may not be the best, but that when the newbie has a little more money he can get something better, I would at least point out the deficiencies of the agreement so that the newbie can correct the deficiencies if they choose to, or in the alternative, at least know the possible consequences should they not correct the deficencies. I would say that the person most in need of an assignment agreement WITH hold harmless language and release language is the newbie.
Here?s my personal guarantee to anyone reading this post. When lawsuits come down, and everyone is now sitting in the conference room at that prestigious law firm of Dewey, Cheatum, and Howe, they aren?t going to ask whether you?re a newbie, or whether you had enough money to get a lawyer or buy an effective contract. All they are going to do is look at your paperwork. That?s it. How do I know?? I?ve been there. If I seem a little conservative or overly cautious, there?s a reason. Read the title of this post.
Back in the old days I used to assign contracts, notes etc by simply signing them on the back. We didn?t use separate agreements in those days. That works too, although I would not dream of using that technique today. But one thing we ALWAYS included with our handwriting on the back was the words ?WITHOUT RECOURSE?. If nothing else I would add these to your assignment agreement.
One additional comment. An attorney can write up an assignment form for under $100. I just think that in the end it is cheaper to get Bronchick?s course. Then you don?t just get the assignment form?.you get many, many forms. You?re in business.
Just my opinion.