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Contracts • Third Parties
K#179
Legal Definition
An assignment is a transfer of rights under an existing contract to a third party.
Plain English Explanation
A contract creates legally enforceable rights between parties. The most common right is the right to demand payment, or the right to receive a benefit of performance. When transfer these rights to a different party, it is called an assignment.
Hypothetical
Hypo 1: Bob wanted his house painted. Sam paints houses. Bob offered Sam $200 to paint his house. Sam agreed. Sam owed $200 to Amy, so he assigned his right to receive $200 from Bob to Amy. Bob and Sam still have a contract between them, but Amy now has the right to collect $200 from Bob.
Visual Aids
Related Concepts
In a third-party beneficiary situation, who is the third-party beneificiary, who is the promisor, and who is the promisee?
What are the implied warranties of an assignor in an assignment for consideration?
What defenses may a promisor assert against a third-party beneficiary?
What duties are not delegable?
What is a delegatee?
What is a delegator, delegatee, and obligee?
What is an assignee?
What is an assignor?
What is an obligee?
What is an obligor?
What is a promisee?
What is a promisor?
What is the difference between an assignment and a delegation?
What is the difference between an incidental and intended beneficiary?
What is the effect of a clause prohibiting assignment?
What is the effect of a contract containing no language about assignment rights?
What is the effect of consideration on assignment rights?
What is the effect of invalidation language on assignment?
What two types of intended beneficiaries are there?
When are modification agreements between the obligor and assignor effective?
When can an assignee sue an obligor for payments to the assignor?
When do a third party's rights to enforce the contract vest?
When does delegation of duties occur?
Who can sue whom in a suit involving beneficiaries, promisees, and promisors?
Who can sue whom in a suit involving the assignment of rights?
Who can sue whom in a suit involving the delegation of duties?
Who prevails when the same rights have been assigned to multiple parties?
