assignment legal def

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In contracts. 1. The act by which one person transfers to another, or causes to vest in that other, the whole of the right, interest, or property which he has in any realty or personalty, in possession or in action, or any share, interest, or subsidiary estate therein. Seventh Nat. Bank v. Iron Co. (C. C.) 35 Fed. 440; Haug v. Riley, 101 Ga. 372, 29 S. E. 44, 40 L It A. 244. More particularly, a written transfer of property, as distinguished from a transfer by mere delivery. 2. In a narrower sense, the transfer or making over of the estate, right, or title which one has in lands and tenements; and, in an especially technical sense, the transfer of the unexpired residue of a term or estate for life or years. Assignment does not include testamentary transfers. The idea of an assignment is essentially that of a transfer by one existing party to another existing party of some species of property or valuable interest, except in the case of an executor. Ilight v. Sackett, 34 N. Y. 447. 3. A transfer or making over by a debtor of all his property and effects to one or more assignees in trust for the benefit of his creditors. 2 Story, Eq. Jur.

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A transfer of rights in real property or Personal Property to another that gives the recipient—the transferee—the rights that the owner or holder of the property—the transferor—had prior to the transfer.

An assignment of wages is the transfer of the right to collect wages from the wage earner to his or her creditor. Statutes regulate the extent to which an assignment may be made.

n. the act of transferring an interest in property or a some right (such as contract benefits) to another. It is used commonly by lawyers, accountants, business people, title companies and others dealing with property. (See: assign )

ASSIGNMENT, contracts. In common parlance this word signifies the transfer of all kinds of property, real, personal, and mixed, and whether the same be in possession or in action; as, a general assignment. In a more technical sense it Is usually applied to the transfer of a term for years; but it is more properly used to signify a transfer of some particular estate or interest in lands.      2. The proper technical words of an assignment are, assign, transfer, and set over; but the words grant, bargain, and sell, or any other words which will show the intent of the parties to make a complete transfer, will amount to an assignment.      3. A chose in action cannot be assigned at law, though it may be done in equity; but the assignee takes it subject to all the equity to which it was liable in the hands of the original party. 2 John. Ch. Rep. 443, and the cases there cited. 2 Wash. Rep. 233.      4. The deed by which an assignment is made,, is also called an assignment. Vide, generally, Com. Dig. h.t.; Bac. Ab. h.t. Vin. Ab. h.t.; Nelson's Ab. h.t.; Civ. Code of Louis. art. 2612. In relation to general assignments, see Angell on Assignments, passim; 1 Hate & Wall. Sel. Dec. 78- 85.      5. By an assignment of a right all the accessories which belong to it, will pass with it as, if the assignor of a bond had collateral security, or a lien on property, the collateral security and the lien will pass with the assignment of the bond. 2 Penn. 361; 3 Bibb, 291; 4 B. Munroe, 529; 2 Drev. n. 218; 1 P. St. R. 454. 6. The assignment of a thing also carries with it all that belongs to it by right of accession; if, therefore, the thing produce interest or rent, the interest or the arrearages of the rent since the assignment, will belong to the assignee. 7 John. Cas. 90 6 Pick. 360.

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Assignment is a legal definition that refers to the transfer of rights, property, or other benefits between two parties. The party allocating the rights is known as the “assignor”, while the one receiving them is called the “assignee”. The other original party to the contract is known as the “ obligor ”.

A burden, duty, or detriment cannot be transferred as an assignment without the agreement of the assignee . Furthermore, the assignment can be carried out as a gift, or it may be paid for with a contractual consideration .

Keep reading to learn how this important legal term is used both in contract and property law and to see relevant examples.

• Assignment Examples

A common example of assignment within property law can be seen in rental agreements between landlords and tenants. For example, a tenant may be renting from a landlord but wants another party to take over the property . In this scenario, the tenant may be able to choose between assigning the lease to a new tenant or subleasing it.

If assigning it, the new tenant will be given the entire balance of the term, with no reversion to anyone else being possible. In other words, the new tenant would have a legal relationship with the landlord. On the other hand, if subleasing the property, the new tenant would be given a limited term and no legal responsibility towards the property owner, only towards the original tenant.

Another example of assignment can be seen within contract law . Let’s say that a school hires a piano teacher for a monthly employment contract with a salary of $2000 per month. As long as there is consent from all parties, the teacher could assign their contract to another qualified piano instructor.

This would be an assignment both of the piano teacher’s rights to receive $2000 per month, and a delegation of their duty to teach piano lessons. This illustrates the fact that under contract law, assignment always includes a transfer of both rights and duties between the parties. If a breach of contract is made by either party, for example for defective performance, then the new teacher or the school can sue each other accordingly.

• Legal Requirements for Assignment

For an assignment to be legally valid, it must meet certain requirements . If these are not met, a trial court can determine that the transfer of rights did not occur. The legal requirements for assignment are as follows:

• All parties must consent and be legally capable to carry out the assignment.
• The objects, rights, or benefits being transferred must be legal.
• The assignment is not against public policy or illegal.
• Some type of consideration is included if necessary.
• The contract in question must already be in place and doesn’t prohibit assignment.
• If a duty is being transferred, and it requires a rare genius or skill, then it cannot be delegated.
• The assignment doesn’t significantly change the expected outcome of a contract.
• Assignment Steps

To successfully assign a contract, certain steps must be followed to ensure the process is legally valid. The necessary assignment steps are listed below:

• Ensuring there is no anti-assignment clause in the contract.
• Executing the assignment by transferring the obligations and rights to a third party.
• Notifying the obligor of the transfer, which in turn relieves the assignor of any liability.
• Avoiding Assignment

In certain situations, one of the two parties may not want to allow their counterpart to assign the contract. This can be prevented by setting anti-assignment clauses in the original contract. An example of this is making it necessary for prior written consent to be attained from the other parties before the assignment is approved. Nevertheless, an anti-assignment clause cannot be included in an assignment that was issued or ordered by a court.

• Assignment vs. Novation

Novation occurs when a party would like to transfer both the benefits and burden of a contract to another party. This is similar to assignment in the sense that the benefits are transferred, but in this case, the burden is also passed on. When novation is finalized, the original contract is deleted and a new one is created, in which a third party becomes responsible for all the obligations and rights of the original contract.

• Assignment vs. Delegation

Although delegation and assignment are similar in purpose, they are two different concepts. Delegation refers to transferring the obligation to a third party without an assignment contract . While in assignment an entire contract and its rights and benefits can be passed on, in delegation only a particular contractual task or activity is transferred.

Let’s look at an example . Lisa is a homeowner that wants to hire Michael with an independent contractor agreement to remodel her garage. He plans to do all the work himself, but he’s not a painter, so he wants to delegate the painting work to his friend Valentina.

In this example, the contract is between Lisa, the obligor, and Michael, the delegator. Valentina would then be known as a delegatee, she doesn’t assume responsibility for the contract nor does she receive the contractual benefits, which in this case would be monetary compensation. However, Michael may have a separate agreement with Valentina to pay her in return for her work.

It’s also important to note that some duties are so specific in nature that it’s not possible to delegate them. In addition, if a party wants to avoid delegation , it’s recommended to add a clause to prevent the other party from delegating their duties.

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Simple English definitions for legal terms

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A quick definition of assignment:

Assignment is when one person gives something they own, like property or rights, to another person. This can happen in contracts or property law. For example, if someone agrees to teach guitar to another person for $50, they can assign that contract to someone else who will then be responsible for teaching guitar and paying the $50. There are rules about how assignments can be made, like not being able to assign something that hasn't been agreed upon yet, and the person who is supposed to do something can still sue the person who was assigned the contract if they don't do what they're supposed to do. In property law, assignment often happens when someone is renting a place and wants someone else to take over the lease.

A more thorough explanation:

Assignment is a legal term that refers to the transfer of rights, property, or benefits from one person (the assignor) to another person (the assignee). This concept is used in both contract and property law.

Under contract law, assignment of a contract involves the transfer of both rights and duties. For example, if person A contracts with person B to teach B guitar for $50, A can assign this contract to person C. This means that A is transferring their rights to the $50 payment to C, and delegating their duty to teach guitar to C. In this example, A is both the "assignor" and the "delegee," C is the "obligor" who must perform the obligations to the assignee, and B is the "assignee" who is owed duties and is liable to the "obligor."

There are a few rules regarding assignments under contract law. First, an individual cannot assign their future right to an assignee if they have not yet secured the contract to perform duties to another. Second, rights cannot be assigned if they materially change the obligor's duty and rights. Third, the obligor can sue the assignee directly if the assignee does not pay them.

Under property law, assignment typically arises in landlord-tenant situations. For example, if person A is renting from landlord B but wants another party (person C) to take over the property, A might be able to choose between assigning and subleasing the property to C. If assigning, A would be giving C the entire balance of the term, with no reversion to anyone, whereas if subleasing, A would be giving C the property for a limited period of the remaining term. Significantly, under assignment, C would have privity of estate with the landlord while under a sublease, C would not.

Person A has a contract with person B to paint their house for $500. A can assign this contract to person C, who will then be responsible for painting the house and paying A the $500. In this example, A is the assignor, B is the obligor, and C is the assignee.

Another example is if person A is renting an apartment from landlord B but wants to move out before the lease is up. A can assign their lease to person C, who will then become the new tenant and be responsible for paying rent to landlord B. In this example, A is the assignor, B is the landlord, and C is the assignee.

These examples illustrate how assignment involves the transfer of rights and duties from one person to another, and how it can be used in both contract and property law.

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assignment - Meaning in Law and Legal Documents, Examples and FAQs

An assignment is when someone officially gives their rights or responsibilities to another person, like transferring ownership of a contract or property.

In normal language you would also say " transfer " instead of " assignment "

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What does "assignment" mean in legal documents?

The term "assignment" in legal documents refers to the process where one person, known as the "assignor," transfers their rights or benefits to another person, called the "assignee." This transfer can happen in various situations, such as contracts or property agreements. Imagine you have a ticket to a concert, but you can't go. You might give that ticket to a friend. In this case, you are the assignor, and your friend is the assignee. The ticket represents the rights you had, and now your friend has those rights instead.

In contract law, assignment involves two main components: the assignment of rights and the delegation of duties. For example, if you hire someone to paint your house for a certain amount of money, you can assign that contract to another person. This means that the new person takes over your rights to receive payment, and they also take on the responsibility to complete the painting job. However, there are rules about what can be assigned. If the original contract requires a specific skill, like a unique painting style, the person cannot just pass that responsibility to someone else without permission.

In property law, assignment often comes into play in rental situations. If you are renting an apartment but need to move, you might want to assign your lease to someone else. This means that the new tenant will take over your lease agreement with the landlord. It's important to note that when you assign a lease, the new tenant has the same rights as you did, and the landlord must accept this change. However, if you choose to sublease instead, you would still be responsible for the lease, and the new tenant would only have a temporary agreement.

Understanding assignment is essential because it affects how rights and responsibilities are shared or transferred. If someone fails to fulfill their obligations after an assignment, the original person may still be held accountable, depending on the situation. This means that if the new person doesn’t pay or doesn’t do the job, the assignor might still have to step in and resolve the issue.

In summary, assignment is a legal term that describes the transfer of rights and responsibilities from one person to another. It can happen in contracts and property agreements, and it’s important to know the rules that govern these transfers to avoid complications down the line.

What are some examples of "assignment" in legal contracts?

Lease Agreement: "John assigned his lease to Sarah, allowing her to take over his rental obligations for the remaining year."

Service Contract: "The graphic designer assigned the contract to another freelancer, who would complete the project for the same fee."

Loan Agreement: "After securing a new job, Mark assigned his loan agreement to his brother, who agreed to take over the payments."

Insurance Policy: "The policyholder assigned the benefits of their insurance policy to a medical provider for payment of services rendered."

Real Estate Purchase Agreement: "The seller assigned their rights under the purchase agreement to a new buyer after deciding to move."

Employment Contract: "The employee assigned their rights to receive a bonus to their spouse in the event of their passing."

Partnership Agreement: "The partner assigned their share of the business to a new investor, who would take on their responsibilities."

Intellectual Property Agreement: "The author assigned the rights to their book to a publishing company, allowing them to publish and distribute it."

FAQs about "assignment"

What is an assignment in legal terms.

An assignment is a legal process where one person (the assignor) transfers their rights or benefits under a contract to another person (the assignee). This means the assignee can now enjoy the benefits or fulfill the obligations of that contract.

What does it mean to assign a contract?

To assign a contract means that one party to the contract gives their rights and responsibilities to someone else. For example, if you have a lease for an apartment, you might assign that lease to a friend, allowing them to live there instead of you.

Who is involved in an assignment?

In an assignment, there are typically two main parties: the assignor, who is the person transferring their rights, and the assignee, who is the person receiving those rights. Sometimes, the original contract may also involve a third party, known as the obligor, who still has obligations under the contract.

How is an assignment created?

An assignment is usually created through a written document that clearly states the rights being transferred and the parties involved. This document should be signed by the assignor to make it official. In some cases, the original contract may require the consent of the other party before an assignment can take place.

Can you assign any contract?

Not all contracts can be assigned. Some contracts have specific clauses that prohibit assignment, especially if the contract involves personal services or relationships, like a job contract. Always check the terms of the contract to see if assignment is allowed.

What happens if an assignment is not allowed?

If an assignment is not allowed and someone tries to assign their rights anyway, the assignment may be considered invalid. This means the assignee would not have any legal rights under the contract, and the original party would still be responsible for fulfilling the contract.

What is the difference between an assignment and a delegation?

An assignment involves transferring rights, while delegation involves transferring duties or responsibilities. For example, if you assign your right to receive payment from a contract, that’s an assignment. If you delegate the responsibility to perform a task to someone else, that’s a delegation.

Do I need a lawyer to create an assignment?

While you don’t necessarily need a lawyer to create an assignment, it can be helpful to consult one, especially for complex contracts. A lawyer can ensure that the assignment is done correctly and that all legal requirements are met.

What should I include in an assignment document?

An assignment document should include the names of the assignor and assignee, a description of the rights being assigned, the date of the assignment, and any necessary signatures. It’s also a good idea to reference the original contract to clarify what rights are being transferred.

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Primary tabs

Assignee is a person to whom a right is transferred by the person holding such rights under the transferred contract (the “assignor”).  The act of transferring is referred to as “ assigning ” or “ assignment ” and is a concept found in both  contract  and  property  law. 

Contract Law  

Under contract law, when one party assigns a contract, the assignment represents both: (1) a transfer of rights; and (2) a delegation of  duties .  For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C.  Here, A has both: assigned A’s rights under the contract to receive the $50 to C, and delegated A’s  duty  to teach guitar to C.  In this example, A is the “assignor” because he/she assigns the contract to C. A is also the “primary obligor ,” meaning he/she will still be liable to B if C fails to teach B guitar. C is the “assignee,” since C is the party to whom A transfers the contract. C is also the “secondary obligor,” since he/she must perform the  obligations  to B. B is the ultimate recipient of the duty under the assignment, and is the “ obligee .”

There are a few notable rules regarding assignments under  contract  law.  First, if an individual has not yet secured the contract to perform duties to another, he/she cannot assign his/her future right to an assignee.  That is, if A has not yet contracted with B to teach B guitar, A cannot  assign  his/her rights to C.  Second, rights cannot be assigned when they materially change the obligor’s duty and rights.  Third, the primary  obligor  can sue the  assignee directly if the  assignee  does not perform the assigned duty. In guitar assignment example, if C does not teach B guitar, A can sue C for any liability that A incurs as a result of C’s failure to perform the assigned contract. Fourth, if the promised performance requires a rare genius or skill, then the primary obligor cannot assign the contract.  

Lastly, a related concept is  novation , which is when the secondary obligor substitutes and releases the primary obligor.  If  novation  occurs, then the primary obligor’s duties are extinguished under the contract. However,  novation  requires the obligee’s  consent . In the guitar example, if A, B, and C agree to novation, then A would not be liable if C fails to teach B guitar.

Property Law

Under  property  law, assignment typically arises in landlord-tenant situations.  For example, A might be renting from landlord B but wants C, a new tenant, to take over the lease.  In this scenario, A might be able to choose between  assigning  and  subleasing  the property to C.  If  assigning , A would be giving C the entire balance of the term, with no reversion to anyone. If subleasing , A would be giving C for a limited period of the remaining term.  Significantly, under assignment, C would have  privity  of  estate  with the landlord, while under a sublease, C would not.

[Last updated in December of 2021 by the Wex Definitions Team ]

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