What is float-free arrangement?

Is it really a subcontract arrangement if the subcontractor pays for the rights?

• If a company transfers the rights of its contracts to another company, and the other company pays for these rights, is this a subcontractor arrangement or an assignment/sale? The company is telling me its a subcontract arrangement and not an assignment, but it doesnt make sense. Why would the subcontrator pay the money (millions) if it doesnt own the customers? How is it protecting its payment/investment if it doesnt not own the customers? Our contract with the first company says they cannot assign our contract but now this new interstate company owns our contracts but they are saying its just a subcontract arrangement and not an assignment. I have never heard of a subcontractor having to buy the customers without ownership?

• Answer:

  In form you are a subcontractor. but in legal term you have the right to demand the payback for an amount specified in the contract. you cannot own the customer really because the law will always favor the original registered contractor. The transfer of rights or Assignment is only if the government foreclosed the first contract and assign new contract in your name. Substance over form. This is to protect the customer.