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Assign: Definition, Example and Related Terms

What does it mean to Assign ?

To assign means to legally transfer or give rights, property, or obligations from one party (the assignor) to another party (the assignee). It's like passing the baton in a relay race - when you assign something, you're handing over your rights or responsibilities to someone else.

In contract law, assignment is a crucial concept that allows parties to transfer their contractual rights or obligations to others. However, not all rights are assignable - some contracts specifically prohibit assignment, and certain personal rights or obligations cannot be assigned by law.

For example, if a company has a contract to receive services, it might assign its rights under that contract to another company during a merger or acquisition. The new company (assignee) would then have the right to receive those services instead of the original company (assignor).

It's important to note that while rights can often be assigned, duties or obligations typically cannot be delegated without the other party's consent. This helps protect all parties involved in the contract and maintains the integrity of the original agreement.

Example(s)

  • Scenario Description
    A landlord assigns their right to collect rent to a property management company. The property management company now has the legal right to collect rent payments from tenants. The original landlord has transferred this right through assignment.
    A company assigns its patent rights to another business as part of a sale. The purchasing company becomes the new owner of the patent rights and can exercise all the rights that come with patent ownership, including the right to manufacture, sell, or license the patented invention.
    A contractor assigns their payment rights to a bank as collateral for a loan. The bank now has the right to receive payments directly from the contractor's clients. This is a common form of assignment used in business financing.