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The notice of assignment (NOA) informs your customer that a third party (bank, financing company, or factoring company) will manage and collect your accounts receivable (AR) going forward.
An Assignment, or an assignment of contract, is a document that allows one party to transfer the rights and benefits of a contract to another party.
The definition of an assignment is a task that has been given to someone. An example of an assignment is homework given to a student.
Under property law, assignment typically arises in landlord-tenant situations. For example, A might be renting from landlord B but wants to another party (C) to take over the property. In this scenario, A might be able to choose between assigning and subleasing the property to C.
​​An assignment of rights agreement is a written document in which one party, the assignor, assigns to another party all or part of their rights under an existing contract. The most common example of this would be when someone wants to sell their shares of stock in a company.

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Assignment of Contract Explained Assignment of contract allows one person to assign, or transfer, their rights, obligations, or property to another. An assignment of contract clause is often included in contracts to give either party the opportunity to transfer their part of the contract to someone else in the future.
The effect of the assignment is to extinguish the contractual relationship between the assignor and the other party to the contract and create privity between the third-party assignee and the other party to the contract.
The difference between assignment and transfer is that assign means its legal to transfer property or a legal right from one person to another, while transfer means its legal to arrange for something to be controlled by or officially belong to another person.
The effect of the assignment is to extinguish the contractual relationship between the assignor and the other party to the contract and create privity between the third-party assignee and the other party to the contract.
Under contract law, assignment of a contract is both: (1) an assignment of rights; and (2) a delegation of duties, in the absence of evidence otherwise. For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C.

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