Assignment

Plain English

When you assign a contract right, you're handing off your benefits under that deal to another person. For example, if you're owed money under a contract, you can assign that right to collect the money to someone else. The person receiving the assignment (called the assignee) can then enforce the contract and collect what's owed. However, you generally can't assign duties or obligations without everyone's permission—only rights transfer.

Example

A contractor finishes a job and is owed $10,000 from a client. The contractor assigns that right to payment to a bank as collateral for a loan. The bank can now collect the $10,000 directly from the client.

Used in a sentence

“The seller's assignment of the lease to a new tenant required the landlord's written consent.”

Related terms