Assignment (law)
Posted on:3/30/2006
| An assignment is a term used with similar meanings in the law of contracts and in the law of real estate. |
An assignment is a term used with similar meanings in the law of contracts and in the law of real estate. In both instances, it encompasses the transfer of rights held by one party - the assignor - to another party - the assignee. The legal nature of the assignment determines some additional rights and liabilities that accompany the act.
Assignment of contract rights
Assignment of rights under a contract is the complete transfer of the rights to receive the benefits accruing to one of the parties to that contract. For example, if party A contracts to wash party B's car for $10, party A can later assign the benefits of the contract - the right to be paid $10 - to party C. In this scenario, party A has become the assignor, party B has become an obligor, and party C is the assignee. Such an assignment may be donative (essentially given as a gift), or it may be contractually exchanged for consideration. It is important to note, however, that party C is not a third party beneficiary, because the contract itself was not made for the purpose of benefitting party C.
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