Dictionary

Assign (in the context of a contract)

Assign (in the context of a contract) – an assignment means a transfer of an existing right or benefit according to established rules. In the context of a contract, an assignment is an action that can be made unilaterally by one party to the contract, whereby that party (Assignor) assigns its rights and benefits under the contract to a third party (Assignee). The assignment can only be made unilaterally by one party in regards to that party’s rights however, one party cannot unilaterally assign its obligations under a contact.

After the assignment of contractual rights has occurred, the Assignee will receive all benefits that have accrued for the benefit of the Assignor. The key component of an assignment in the context of contract law is that the Assignor of the contractual rights will still be obligated to perform their obligations under a contract whereas the Assignee does not become a party to the contract. However, an Assignee, despite not being a party to the contract, is able to enforce and therefore receive the assigned benefit.