Assignment: Contract Law and Equitable Assignment Essay

Submitted By sky8
Words: 384
Pages: 2

The transfer of a right from one party to another. For example, a party to a contract (the assignor) may, as a general rule and subject to the express terms of a contract, assign its rights under the contract to a third party (the assignee) without the consent of the party against whom those rights are held. Obligations cannot be transferred to a third party except by novation. An assignment may be either a legal assignment or an equitable assignment.

For more information on assigning rights under a contract, see Practice note, Contracts: assignment.

In finance transactions, assignments may be used as a way to take security over, for example,choses in action. For more information on security assignments, see Practice note, Taking security over choses in action: Assignment.

n assignment (Latin cessio) is a term used with similar meanings in the law ofcontracts 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—theassignee.[1] The details of the assignment determines some additional rights and liabilities (or duties).

Typically a third-party is involved in a contract with the assignor, and the contract is in effect transferred to the assignee. For example, a borrower borrows money from a local bank. The local bank receives a mortgage note and can thereafter transfer that note to a financial institution in exchange for a lump-sum of cash, thereby assigning the right to receive…