Assignment

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 (www.practicallaw.com/1-107-5796). An assignment may be either a legal assignment (www.practicallaw.com/9-107-6754) or an equitable assignment (www.practicallaw.com/2-107-6540).

For more information on assigning rights under a contract, see Practice note, Contracts: assignment (www.practicallaw.com/7-381-7509).

In finance transactions, assignments may be used as a way to take security over, for example, choses in action (www.practicallaw.com/2-107-5828). For more information on security assignments, see Practice note, Taking security over choses in action: Assignment (www.practicallaw.com/4-201-9675).

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