Lia Kopin-Green
November 27, 2022

What is Assignment?

In business law, assignment refers to the legal transfer of rights, property, or other benefits between two parties. In the assignment, one party known as the “assignor” transfers the rights to another party referred to as the “assignee.” In most cases, burdens and duties cannot be transferred in an assignment unless the assignee explicitly agrees. Assignments are typically carried out with payment for contractual consideration, or they may be given as a gift.

Key Takeaways

  • Assignment is defined as the legal transfer of rights, property, or other benefits from one party to another.
  • In these cases, one party known as the “assignor” transfers the rights to another party referred to as the “assignee.”
  • In general, both parties must agree to the assignment in order for it to be legally binding.

Examples of Assignment

In order to better understand how assignment works, let’s take a look at one of the most common examples of assignment. In property law, there may be a situation in which a tenant renting a house from a landlord wants another party to take over their lease of the property. The tenant, who would be the assignor in this case, may choose to assign the lease to another party. This party, which would be referred to as the assignee, would receive property rights over the house. Through the transfer of these rights, the new tenants have officially created a legal relationship with the landlord of the house.

Another well-known example of assignment in law is wage assignment. Wage assignment allows creditors to deduct money directly from an employee’s paycheck to pay off a debt. These assignments, which are voluntary agreements between the employee and the creditor, are often used to collect child support payments or other debts such as unpaid taxes or loans.

Requirements for Assignment

An assignment must meet certain requirements in order to have legal significance and be enforceable in a court of law. The following are some of the most essential requirements for assignments:

  • The parties involved must be legally capable of carrying out the assignment
  • The objects or rights being transferred are legal
  • All parties involved consent to the assignment
  • The transfer of a duty cannot be assigned if it requires a rare skill or expertise 
  • A contract's expected outcome is not significantly altered by the assignment
  • Monetary consideration, if relevant, should be included

It should be noted that assignments will be deemed invalid and therefore will not be enforced if the relevant contract specifically prohibits assignment or if the assignment goes against public policy or law.

Bottom Line

We see assignments everywhere, whether it be in the realms of property, family, bankruptcy, or corporate law. Although they are considered voluntary agreements that both parties must agree to, some are not always aware that they have entered into assignments. In fact, in most cases, employees enter into wage assignment contracts by mistake. Wage assignment provisions may be hidden among the fine print in certain contracts, which is why it is so important to have an experienced attorney review contracts before you sign them.

A top-tier business attorney can help you with all things assignments. Feel free to reach out to one of our experienced lawyers today.

Featured Business Law Lawyers

Barnhisel, Barlow, & Stephens, P.C.

Google rating
56 years in practice
Business Law, Personal Injury
View Profile

Singing River Law

Google rating
16 years in practice
Business Law, Personal Injury
View Profile

Lewis Coppedge, P.C.

Google rating
33 years in practice
Business Law, Employment Law, Personal Injury
View Profile

Theory Law APC

Google rating
10 years in practice
Auto Accidents, Employment Law, Personal Injury
View Profile

Lake Tapps Legal

10 years in practice
Criminal Defense
View Profile

D Michael Mullori Jr Attorney At Law

Google rating
23 years in practice
Auto Accidents, Personal Injury, Premises Liability
View Profile

Related Posts

Partnership Agreement
Lia Kopin-GreenJanuary 8, 2023
Force Majeure
Lia Kopin-GreenDecember 14, 2022
Good Faith
Lia Kopin-GreenDecember 18, 2022
Stock Transfer Form
Lia Kopin-GreenFebruary 12, 2023
Attorney At Law is changing how clients connect with lawyers. By providing an innovative platform to lawyers who want to expand their practice’s reach, AAL is bringing law practices into the future.
6142 Innovation Way
Carlsbad, California 92009
Some of the content of this website may be considered attorney advertising under the rules of certain jurisdictions. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.
crossmenuchevron-upchevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram