Primary tabs

Assignment is a legal term whereby an individual, the “assignor,” transfers rights, property, or other benefits to another known as the “ assignee .”   This concept is used in both contract and property law.  The term can refer to either the act of transfer or the rights /property/benefits being transferred.

Contract Law   

Under contract law, assignment of a contract is both: (1) an assignment of rights; and (2) a delegation of duties , in the absence of evidence otherwise.  For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C.  That is, this assignment is both: (1) an assignment of A’s rights under the contract to the $50; and (2) a delegation of A’s duty to teach guitar to C.  In this example, A is both the “assignor” and the “delegee” who d elegates the duties to another (C), C is known as the “ obligor ” who must perform the obligations to the assignee , and B is the “ assignee ” who is owed duties and is liable to the “ obligor ”.

(1) Assignment of Rights/Duties Under Contract Law

There are a few notable rules regarding assignments under contract law.  First, if an individual has not yet secured the contract to perform duties to another, he/she cannot assign his/her future right to an assignee .  That is, if A has not yet contracted with B to teach B guitar, A cannot assign his/her rights to C.  Second, rights cannot be assigned when they materially change the obligor ’s duty and rights.  Third, the obligor can sue the assignee directly if the assignee does not pay him/her.  Following the previous example, this means that C ( obligor ) can sue B ( assignee ) if C teaches guitar to B, but B does not pay C $50 in return.

            (2) Delegation of Duties

If the promised performance requires a rare genius or skill, then the delegee cannot delegate it to the obligor.  It can only be delegated if the promised performance is more commonplace.  Further, an obligee can sue if the assignee does not perform.  However, the delegee is secondarily liable unless there has been an express release of the delegee.  That is, if B does want C to teach guitar but C refuses to, then B can sue C.  If C still refuses to perform, then B can compel A to fulfill the duties under secondary liability.

Lastly, a related concept is novation , which is when a new obligor substitutes and releases an old obligor.  If novation occurs, then the original obligor’s duties are wiped out. However, novation requires an original obligee’s consent .  

Property Law

Under property law, assignment typically arises in landlord-tenant situations.  For example, A might be renting from landlord B but wants to another party (C) to take over the property.   In this scenario, A might be able to choose between assigning and subleasing the property to C.  If assigning , A would be giving C the entire balance of the term, with no reversion to anyone whereas if subleasing , A would be giving C for a limited period of the remaining term.  Significantly, under assignment C would have privity of estate with the landlord while under a sublease, C would not. 

[Last updated in May of 2020 by the Wex Definitions Team ]

  • business law
  • landlord & tenant
  • property & real estate law
  • trusts, inheritances & estates
  • wex definitions

Trustpilot

Assignment Of Rights Agreement

Jump to section, what is an assignment of rights agreement.

​​An assignment of rights agreement is a written document in which one party, the assignor, assigns to another party all or part of their rights under an existing contract. The most common example of this would be when someone wants to sell their shares of stock in a company.

When you buy shares from someone else (the seller), they agree to transfer them over and give up any control they had on that share. This way, another party can take ownership without going through the trouble of trying to buy the whole company themselves.

Common Sections in Assignment Of Rights Agreements

Below is a list of common sections included in Assignment Of Rights Agreements. These sections are linked to the below sample agreement for you to explore.

Assignment Of Rights Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-99.(H)(7) 5 dex99h7.htm FORM OF ASSIGNMENT AGREEMENT , Viewed December 20, 2021, View Source on SEC .

Who Helps With Assignment Of Rights Agreements?

Lawyers with backgrounds working on assignment of rights agreements work with clients to help. Do you need help with an assignment of rights agreement?

Post a project  in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate assignment of rights agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Meet some of our Assignment Of Rights Agreement Lawyers

Seth S. on ContractsCounsel

I am an attorney admitted in NY, with over 6 years of experience drafting, reviewing and negotiating a wide array of contracts and agreements. I have experience in Sports and Entertainment, Real Estate, Healthcare, Estate Planning and with Startup Companies. I am confident I can assist you with all of your legal needs.

Rishma E. on ContractsCounsel

Rishma D. Eckert, Esq. is a business law attorney who primarily represents domestic and international companies and entrepreneurs. A native of both Belize and Guyana, she remains engaged with the Caribbean community in South Florida: as a Board Member and General Counsel for the Belize American Chamber of Commerce of Florida, and Member of the Guyanese American Chamber of Commerce. She holds a Bachelor of Laws degree (LL.B.) from the University of Guyana in South America, a Master’s degree in International and Comparative Law (LL.M.) from Stetson University College of Law in Gulfport, Florida, and earned a Juris Doctor degree (J.D.) from St. Thomas University School of Law in Miami, Florida. Licensed to practice in the State of Florida and the Federal Court in the Southern District of Florida, Mrs. Eckert focuses her passion and practice on domestic and international corporate structuring and incorporation, corporate governance, contract negotiation and drafting, and trademark and copyright registrations.

Kiel G. on ContractsCounsel

Founder and Managing partner of Emerald Law, PLLC, a business law firm specializing in contract drafting and corporate transactions. Kiel worked as in house counsel for a variety of companies before launching his own firm, and most recently served as the Chief Legal Officer for an international private equity firm.

Jarrett S. on ContractsCounsel

I work with early stage startups (in Georgia and internationally) with their formation, contract, patent and investment needs.

Jane C. on ContractsCounsel

Skilled in the details of complex corporate transactions, I have 15 years experience working with entrepreneurs and businesses to plan and grow for the future. Clients trust me because of the practical guided advice I provide. No deal is too small or complex for me to handle.

Mark A. on ContractsCounsel

Mark A. Addington focuses his practice primarily on employment litigation, including contractual disputes, restrictive covenants (such as non-competition, non-solicitation, or confidential information restrictions), defense of wage and hour, harassment, retaliatory discharge, disability, age, religion, race, and sex discrimination.

Benjamin M. on ContractsCounsel

Benjamin M.

Experienced Attorney focused on transactional law, payments processing, banking and finance law, and working with fintech companies with a demonstrated history of driving successful negotiations in technology sourcing and transactions and strong understanding of government contracts and the procurement process

Find the best lawyer for your project

assignment of property rights

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Business lawyers by top cities

  • Austin Business Lawyers
  • Boston Business Lawyers
  • Chicago Business Lawyers
  • Dallas Business Lawyers
  • Denver Business Lawyers
  • Houston Business Lawyers
  • Los Angeles Business Lawyers
  • New York Business Lawyers
  • Phoenix Business Lawyers
  • San Diego Business Lawyers
  • Tampa Business Lawyers

Assignment Of Rights Agreement lawyers by city

  • Austin Assignment Of Rights Agreement Lawyers
  • Boston Assignment Of Rights Agreement Lawyers
  • Chicago Assignment Of Rights Agreement Lawyers
  • Dallas Assignment Of Rights Agreement Lawyers
  • Denver Assignment Of Rights Agreement Lawyers
  • Houston Assignment Of Rights Agreement Lawyers
  • Los Angeles Assignment Of Rights Agreement Lawyers
  • New York Assignment Of Rights Agreement Lawyers
  • Phoenix Assignment Of Rights Agreement Lawyers
  • San Diego Assignment Of Rights Agreement Lawyers
  • Tampa Assignment Of Rights Agreement Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Find lawyers and attorneys by city

logo

  • assignments basic law

Assignments: The Basic Law

The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States.

As with many terms commonly used, people are familiar with the term but often are not aware or fully aware of what the terms entail. The concept of assignment of rights and obligations is one of those simple concepts with wide ranging ramifications in the contractual and business context and the law imposes severe restrictions on the validity and effect of assignment in many instances. Clear contractual provisions concerning assignments and rights should be in every document and structure created and this article will outline why such drafting is essential for the creation of appropriate and effective contracts and structures.

The reader should first read the article on Limited Liability Entities in the United States and Contracts since the information in those articles will be assumed in this article.

Basic Definitions and Concepts:

An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” The legal nature of the assignment and the contractual terms of the agreement between the parties determines some additional rights and liabilities that accompany the assignment. The assignment of rights under a contract usually completely transfers the rights to the assignee to receive the benefits accruing under the contract. Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court , 35 Cal. 2d 109, 113-114 (Cal. 1950).

An assignment will generally be permitted under the law unless there is an express prohibition against assignment in the underlying contract or lease. Where assignments are permitted, the assignor need not consult the other party to the contract but may merely assign the rights at that time. However, an assignment cannot have any adverse effect on the duties of the other party to the contract, nor can it diminish the chance of the other party receiving complete performance. The assignor normally remains liable unless there is an agreement to the contrary by the other party to the contract.

The effect of a valid assignment is to remove privity between the assignor and the obligor and create privity between the obligor and the assignee. Privity is usually defined as a direct and immediate contractual relationship. See Merchants case above.

Further, for the assignment to be effective in most jurisdictions, it must occur in the present. One does not normally assign a future right; the assignment vests immediate rights and obligations.

No specific language is required to create an assignment so long as the assignor makes clear his/her intent to assign identified contractual rights to the assignee. Since expensive litigation can erupt from ambiguous or vague language, obtaining the correct verbiage is vital. An agreement must manifest the intent to transfer rights and can either be oral or in writing and the rights assigned must be certain.

Note that an assignment of an interest is the transfer of some identifiable property, claim, or right from the assignor to the assignee. The assignment operates to transfer to the assignee all of the rights, title, or interest of the assignor in the thing assigned. A transfer of all rights, title, and interests conveys everything that the assignor owned in the thing assigned and the assignee stands in the shoes of the assignor. Knott v. McDonald’s Corp ., 985 F. Supp. 1222 (N.D. Cal. 1997)

The parties must intend to effectuate an assignment at the time of the transfer, although no particular language or procedure is necessary. As long ago as the case of National Reserve Co. v. Metropolitan Trust Co ., 17 Cal. 2d 827 (Cal. 1941), the court held that in determining what rights or interests pass under an assignment, the intention of the parties as manifested in the instrument is controlling.

The intent of the parties to an assignment is a question of fact to be derived not only from the instrument executed by the parties but also from the surrounding circumstances. When there is no writing to evidence the intention to transfer some identifiable property, claim, or right, it is necessary to scrutinize the surrounding circumstances and parties’ acts to ascertain their intentions. Strosberg v. Brauvin Realty Servs., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998)

The general rule applicable to assignments of choses in action is that an assignment, unless there is a contract to the contrary, carries with it all securities held by the assignor as collateral to the claim and all rights incidental thereto and vests in the assignee the equitable title to such collateral securities and incidental rights. An unqualified assignment of a contract or chose in action, however, with no indication of the intent of the parties, vests in the assignee the assigned contract or chose and all rights and remedies incidental thereto.

More examples: In Strosberg v. Brauvin Realty Servs ., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998), the court held that the assignee of a party to a subordination agreement is entitled to the benefits and is subject to the burdens of the agreement. In Florida E. C. R. Co. v. Eno , 99 Fla. 887 (Fla. 1930), the court held that the mere assignment of all sums due in and of itself creates no different or other liability of the owner to the assignee than that which existed from the owner to the assignor.

And note that even though an assignment vests in the assignee all rights, remedies, and contingent benefits which are incidental to the thing assigned, those which are personal to the assignor and for his sole benefit are not assigned. Rasp v. Hidden Valley Lake, Inc ., 519 N.E.2d 153, 158 (Ind. Ct. App. 1988). Thus, if the underlying agreement provides that a service can only be provided to X, X cannot assign that right to Y.

Novation Compared to Assignment:

Although the difference between a novation and an assignment may appear narrow, it is an essential one. “Novation is a act whereby one party transfers all its obligations and benefits under a contract to a third party.” In a novation, a third party successfully substitutes the original party as a party to the contract. “When a contract is novated, the other contracting party must be left in the same position he was in prior to the novation being made.”

A sublease is the transfer when a tenant retains some right of reentry onto the leased premises. However, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, then the transfer is an assignment. The assignor is normally also removed from liability to the landlord only if the landlord consents or allowed that right in the lease. In a sublease, the original tenant is not released from the obligations of the original lease.

Equitable Assignments:

An equitable assignment is one in which one has a future interest and is not valid at law but valid in a court of equity. In National Bank of Republic v. United Sec. Life Ins. & Trust Co. , 17 App. D.C. 112 (D.C. Cir. 1900), the court held that to constitute an equitable assignment of a chose in action, the following has to occur generally: anything said written or done, in pursuance of an agreement and for valuable consideration, or in consideration of an antecedent debt, to place a chose in action or fund out of the control of the owner, and appropriate it to or in favor of another person, amounts to an equitable assignment. Thus, an agreement, between a debtor and a creditor, that the debt shall be paid out of a specific fund going to the debtor may operate as an equitable assignment.

In Egyptian Navigation Co. v. Baker Invs. Corp. , 2008 U.S. Dist. LEXIS 30804 (S.D.N.Y. Apr. 14, 2008), the court stated that an equitable assignment occurs under English law when an assignor, with an intent to transfer his/her right to a chose in action, informs the assignee about the right so transferred.

An executory agreement or a declaration of trust are also equitable assignments if unenforceable as assignments by a court of law but enforceable by a court of equity exercising sound discretion according to the circumstances of the case. Since California combines courts of equity and courts of law, the same court would hear arguments as to whether an equitable assignment had occurred. Quite often, such relief is granted to avoid fraud or unjust enrichment.

Note that obtaining an assignment through fraudulent means invalidates the assignment. Fraud destroys the validity of everything into which it enters. It vitiates the most solemn contracts, documents, and even judgments. Walker v. Rich , 79 Cal. App. 139 (Cal. App. 1926). If an assignment is made with the fraudulent intent to delay, hinder, and defraud creditors, then it is void as fraudulent in fact. See our article on Transfers to Defraud Creditors .

But note that the motives that prompted an assignor to make the transfer will be considered as immaterial and will constitute no defense to an action by the assignee, if an assignment is considered as valid in all other respects.

Enforceability of Assignments:

Whether a right under a contract is capable of being transferred is determined by the law of the place where the contract was entered into. The validity and effect of an assignment is determined by the law of the place of assignment. The validity of an assignment of a contractual right is governed by the law of the state with the most significant relationship to the assignment and the parties.

In some jurisdictions, the traditional conflict of laws rules governing assignments has been rejected and the law of the place having the most significant contacts with the assignment applies. In Downs v. American Mut. Liability Ins. Co ., 14 N.Y.2d 266 (N.Y. 1964), a wife and her husband separated and the wife obtained a judgment of separation from the husband in New York. The judgment required the husband to pay a certain yearly sum to the wife. The husband assigned 50 percent of his future salary, wages, and earnings to the wife. The agreement authorized the employer to make such payments to the wife.

After the husband moved from New York, the wife learned that he was employed by an employer in Massachusetts. She sent the proper notice and demanded payment under the agreement. The employer refused and the wife brought an action for enforcement. The court observed that Massachusetts did not prohibit assignment of the husband’s wages. Moreover, Massachusetts law was not controlling because New York had the most significant relationship with the assignment. Therefore, the court ruled in favor of the wife.

Therefore, the validity of an assignment is determined by looking to the law of the forum with the most significant relationship to the assignment itself. To determine the applicable law of assignments, the court must look to the law of the state which is most significantly related to the principal issue before it.

Assignment of Contractual Rights:

Generally, the law allows the assignment of a contractual right unless the substitution of rights would materially change the duty of the obligor, materially increase the burden or risk imposed on the obligor by the contract, materially impair the chance of obtaining return performance, or materially reduce the value of the performance to the obligor. Restat 2d of Contracts, § 317(2)(a). This presumes that the underlying agreement is silent on the right to assign.

If the contract specifically precludes assignment, the contractual right is not assignable. Whether a contract is assignable is a matter of contractual intent and one must look to the language used by the parties to discern that intent.

In the absence of an express provision to the contrary, the rights and duties under a bilateral executory contract that does not involve personal skill, trust, or confidence may be assigned without the consent of the other party. But note that an assignment is invalid if it would materially alter the other party’s duties and responsibilities. Once an assignment is effective, the assignee stands in the shoes of the assignor and assumes all of assignor’s rights. Hence, after a valid assignment, the assignor’s right to performance is extinguished, transferred to assignee, and the assignee possesses the same rights, benefits, and remedies assignor once possessed. Robert Lamb Hart Planners & Architects v. Evergreen, Ltd. , 787 F. Supp. 753 (S.D. Ohio 1992).

On the other hand, an assignee’s right against the obligor is subject to “all of the limitations of the assignor’s right, all defenses thereto, and all set-offs and counterclaims which would have been available against the assignor had there been no assignment, provided that these defenses and set-offs are based on facts existing at the time of the assignment.” See Robert Lamb , case, above.

The power of the contract to restrict assignment is broad. Usually, contractual provisions that restrict assignment of the contract without the consent of the obligor are valid and enforceable, even when there is statutory authorization for the assignment. The restriction of the power to assign is often ineffective unless the restriction is expressly and precisely stated. Anti-assignment clauses are effective only if they contain clear, unambiguous language of prohibition. Anti-assignment clauses protect only the obligor and do not affect the transaction between the assignee and assignor.

Usually, a prohibition against the assignment of a contract does not prevent an assignment of the right to receive payments due, unless circumstances indicate the contrary. Moreover, the contracting parties cannot, by a mere non-assignment provision, prevent the effectual alienation of the right to money which becomes due under the contract.

A contract provision prohibiting or restricting an assignment may be waived, or a party may so act as to be estopped from objecting to the assignment, such as by effectively ratifying the assignment. The power to void an assignment made in violation of an anti-assignment clause may be waived either before or after the assignment. See our article on Contracts.

Noncompete Clauses and Assignments:

Of critical import to most buyers of businesses is the ability to ensure that key employees of the business being purchased cannot start a competing company. Some states strictly limit such clauses, some do allow them. California does restrict noncompete clauses, only allowing them under certain circumstances. A common question in those states that do allow them is whether such rights can be assigned to a new party, such as the buyer of the buyer.

A covenant not to compete, also called a non-competitive clause, is a formal agreement prohibiting one party from performing similar work or business within a designated area for a specified amount of time. This type of clause is generally included in contracts between employer and employee and contracts between buyer and seller of a business.

Many workers sign a covenant not to compete as part of the paperwork required for employment. It may be a separate document similar to a non-disclosure agreement, or buried within a number of other clauses in a contract. A covenant not to compete is generally legal and enforceable, although there are some exceptions and restrictions.

Whenever a company recruits skilled employees, it invests a significant amount of time and training. For example, it often takes years before a research chemist or a design engineer develops a workable knowledge of a company’s product line, including trade secrets and highly sensitive information. Once an employee gains this knowledge and experience, however, all sorts of things can happen. The employee could work for the company until retirement, accept a better offer from a competing company or start up his or her own business.

A covenant not to compete may cover a number of potential issues between employers and former employees. Many companies spend years developing a local base of customers or clients. It is important that this customer base not fall into the hands of local competitors. When an employee signs a covenant not to compete, he or she usually agrees not to use insider knowledge of the company’s customer base to disadvantage the company. The covenant not to compete often defines a broad geographical area considered off-limits to former employees, possibly tens or hundreds of miles.

Another area of concern covered by a covenant not to compete is a potential ‘brain drain’. Some high-level former employees may seek to recruit others from the same company to create new competition. Retention of employees, especially those with unique skills or proprietary knowledge, is vital for most companies, so a covenant not to compete may spell out definite restrictions on the hiring or recruiting of employees.

A covenant not to compete may also define a specific amount of time before a former employee can seek employment in a similar field. Many companies offer a substantial severance package to make sure former employees are financially solvent until the terms of the covenant not to compete have been met.

Because the use of a covenant not to compete can be controversial, a handful of states, including California, have largely banned this type of contractual language. The legal enforcement of these agreements falls on individual states, and many have sided with the employee during arbitration or litigation. A covenant not to compete must be reasonable and specific, with defined time periods and coverage areas. If the agreement gives the company too much power over former employees or is ambiguous, state courts may declare it to be overbroad and therefore unenforceable. In such case, the employee would be free to pursue any employment opportunity, including working for a direct competitor or starting up a new company of his or her own.

It has been held that an employee’s covenant not to compete is assignable where one business is transferred to another, that a merger does not constitute an assignment of a covenant not to compete, and that a covenant not to compete is enforceable by a successor to the employer where the assignment does not create an added burden of employment or other disadvantage to the employee. However, in some states such as Hawaii, it has also been held that a covenant not to compete is not assignable and under various statutes for various reasons that such covenants are not enforceable against an employee by a successor to the employer. Hawaii v. Gannett Pac. Corp. , 99 F. Supp. 2d 1241 (D. Haw. 1999)

It is vital to obtain the relevant law of the applicable state before drafting or attempting to enforce assignment rights in this particular area.

Conclusion:

In the current business world of fast changing structures, agreements, employees and projects, the ability to assign rights and obligations is essential to allow flexibility and adjustment to new situations. Conversely, the ability to hold a contracting party into the deal may be essential for the future of a party. Thus, the law of assignments and the restriction on same is a critical aspect of every agreement and every structure. This basic provision is often glanced at by the contracting parties, or scribbled into the deal at the last minute but can easily become the most vital part of the transaction.

As an example, one client of ours came into the office outraged that his co venturer on a sizable exporting agreement, who had excellent connections in Brazil, had elected to pursue another venture instead and assigned the agreement to a party unknown to our client and without the business contacts our client considered vital. When we examined the handwritten agreement our client had drafted in a restaurant in Sao Paolo, we discovered there was no restriction on assignment whatsoever…our client had not even considered that right when drafting the agreement after a full day of work.

One choses who one does business with carefully…to ensure that one’s choice remains the party on the other side of the contract, one must master the ability to negotiate proper assignment provisions.

Founded in 1939, our law firm combines the ability to represent clients in domestic or international matters with the personal interaction with clients that is traditional to a long established law firm.

Read more about our firm

© 2024, Stimmel, Stimmel & Roeser, All rights reserved  | Terms of Use | Site by Bay Design

Assignment of Contract Rights: Everything You Need to Know

The assignment of contract rights happens when one party assigns the obligations and rights of their part of a legal agreement to a different party. 3 min read updated on February 01, 2023

The assignment of contract rights happens when one party assigns the obligations and rights of their part of a legal agreement to a different party. 

What Is an Assignment of Contract?

The party that currently holds rights and obligations in an existing contract is called the assignor and the party that is taking over that position in the contract is called the assignee. When assignment of contract takes place, the assignor usually wants to hand all of their duties over to a new individual or company, but the assignee needs to be fully aware of what they're taking on. 

Only tangible things like property and contract rights can be transferred or assigned . Most contracts allow for assignment or transfer of contract rights, but some will include a clause specifying that transfers are not permitted. 

If the contract does allow for assignments, the assignor isn't required to have the agreement of the other party in the contract but may transfer their rights whenever they want. Contract assignment does not affect the rights and responsibilities of either party involved in the contract. Just because rights are assigned or transferred doesn't mean that the duties of the contract no longer need to be carried out. 

Even after the assignor transfers their rights to another, they still remain liable if any issues arise unless otherwise noted in an agreement with the other party. 

The purpose for the assignment of contract rights is to change the contractual relationship, or privity , between two parties by replacing one party with a new party. 

How Do Contract Assignments Work?

Contract assignments are handled differently depending on certain aspects of the agreement and other factors. The language of the original contract plays a huge role because some agreements include clauses that don't allow for the assignment of contract rights or that require the consent of the other party before assignment can occur.

For example, if Susan has a contract with a local pharmacy to deliver her prescriptions each month and the pharmacy changes ownership, the new pharmacy can have Susan's contract assigned to them. As long as Susan continues to receive her medicine when she needs it, the contract continues on, but now Susan has an agreement with a new party. 

Some contracts specify that the liability of the agreement lies with the original parties, even if assignment of contract takes place. This happens when the assignor guarantees that the assignee will continue to perform  the duties required in the contract. That guarantee makes the assignor liable. 

Are Assignments Always Enforced?

Assignments of contract rights are usually enforceable, but will not be under these circumstances:

  • Assignment is prohibited in the contract language, which is called an anti-assignment clause.
  • Assignment of rights changes the foundational terms of the agreement.
  • The assignment is illegal in some way.

If assignment of contract takes place, but the contract actually prohibits it, the assignment will automatically be voided. 

When a transfer of contract rights will somehow change the basics of the contract, assignment cannot happen. For instance, if risks are increased, value is decreased, or the ability for performance is affected, the assignment will probably not be enforced by the court. 

Basic Rights of Contract Assignments

Most contracts allow for assignments, but you'll want to double check a contract before signing if this is something you anticipate happening during the lifespan of your agreement. Contract law does impose strict rules and regulations regarding the assignment of contract rights, so it's important to be sure that any transfers of rights are fully legal before acting on them. 

Any business agreements should always outline provisions for contract assignments and be well-drafted to be sure that the agreement is effective and enforceable. 

Why Use Contract Assignments?

When an assignor hands over their contracts rights to an assignee, they are signing away their obligation to perform and putting that obligation on a new party. The other party involved in the contract should see no difference in how the agreement plays out. If performance is negatively affected by the assignment of rights, something is wrong. 

If a party in a contract can no longer perform their duties, it is better to assign their contractual rights to a party who can carry out the duties rather than breach contract. 

If you need help with the assignment of contract rights, you can  post your legal need  on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. 

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

  • Assignment of Rights Example
  • Consent to Assignment
  • Assignment of Rights and Obligations Under a Contract
  • Legal Assignment
  • Assignment Contract Law
  • Assignment Law
  • Assignment Of Contracts
  • Assignment and Novation Agreement: What You Need to Know
  • Assignability Of Contracts
  • What Is the Definition of Assigns
  • Search Menu
  • Sign in through your institution
  • Advance articles
  • Featured articles
  • Virtual Issues
  • Browse content in B - History of Economic Thought, Methodology, and Heterodox Approaches
  • Browse content in B4 - Economic Methodology
  • B49 - Other
  • Browse content in C - Mathematical and Quantitative Methods
  • Browse content in C0 - General
  • C01 - Econometrics
  • Browse content in C1 - Econometric and Statistical Methods and Methodology: General
  • C10 - General
  • C11 - Bayesian Analysis: General
  • C12 - Hypothesis Testing: General
  • C13 - Estimation: General
  • C14 - Semiparametric and Nonparametric Methods: General
  • C15 - Statistical Simulation Methods: General
  • Browse content in C2 - Single Equation Models; Single Variables
  • C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
  • C22 - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
  • C23 - Panel Data Models; Spatio-temporal Models
  • C26 - Instrumental Variables (IV) Estimation
  • Browse content in C3 - Multiple or Simultaneous Equation Models; Multiple Variables
  • C31 - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
  • C33 - Panel Data Models; Spatio-temporal Models
  • C34 - Truncated and Censored Models; Switching Regression Models
  • C35 - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
  • C36 - Instrumental Variables (IV) Estimation
  • Browse content in C4 - Econometric and Statistical Methods: Special Topics
  • C41 - Duration Analysis; Optimal Timing Strategies
  • C44 - Operations Research; Statistical Decision Theory
  • Browse content in C5 - Econometric Modeling
  • C50 - General
  • C51 - Model Construction and Estimation
  • C52 - Model Evaluation, Validation, and Selection
  • C53 - Forecasting and Prediction Methods; Simulation Methods
  • C54 - Quantitative Policy Modeling
  • C55 - Large Data Sets: Modeling and Analysis
  • C57 - Econometrics of Games and Auctions
  • Browse content in C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
  • C61 - Optimization Techniques; Programming Models; Dynamic Analysis
  • C62 - Existence and Stability Conditions of Equilibrium
  • C63 - Computational Techniques; Simulation Modeling
  • C67 - Input-Output Models
  • C68 - Computable General Equilibrium Models
  • Browse content in C7 - Game Theory and Bargaining Theory
  • C70 - General
  • C72 - Noncooperative Games
  • C73 - Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
  • C78 - Bargaining Theory; Matching Theory
  • Browse content in C8 - Data Collection and Data Estimation Methodology; Computer Programs
  • C83 - Survey Methods; Sampling Methods
  • Browse content in C9 - Design of Experiments
  • C90 - General
  • C91 - Laboratory, Individual Behavior
  • C92 - Laboratory, Group Behavior
  • C93 - Field Experiments
  • Browse content in D - Microeconomics
  • Browse content in D0 - General
  • D01 - Microeconomic Behavior: Underlying Principles
  • D02 - Institutions: Design, Formation, Operations, and Impact
  • D03 - Behavioral Microeconomics: Underlying Principles
  • Browse content in D1 - Household Behavior and Family Economics
  • D11 - Consumer Economics: Theory
  • D12 - Consumer Economics: Empirical Analysis
  • D13 - Household Production and Intrahousehold Allocation
  • D14 - Household Saving; Personal Finance
  • D15 - Intertemporal Household Choice: Life Cycle Models and Saving
  • D18 - Consumer Protection
  • Browse content in D2 - Production and Organizations
  • D21 - Firm Behavior: Theory
  • D22 - Firm Behavior: Empirical Analysis
  • D23 - Organizational Behavior; Transaction Costs; Property Rights
  • D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
  • D25 - Intertemporal Firm Choice: Investment, Capacity, and Financing
  • D29 - Other
  • Browse content in D3 - Distribution
  • D30 - General
  • D31 - Personal Income, Wealth, and Their Distributions
  • Browse content in D4 - Market Structure, Pricing, and Design
  • D40 - General
  • D41 - Perfect Competition
  • D42 - Monopoly
  • D43 - Oligopoly and Other Forms of Market Imperfection
  • D44 - Auctions
  • D47 - Market Design
  • Browse content in D5 - General Equilibrium and Disequilibrium
  • D50 - General
  • D51 - Exchange and Production Economies
  • D52 - Incomplete Markets
  • D53 - Financial Markets
  • D57 - Input-Output Tables and Analysis
  • D58 - Computable and Other Applied General Equilibrium Models
  • Browse content in D6 - Welfare Economics
  • D60 - General
  • D61 - Allocative Efficiency; Cost-Benefit Analysis
  • D62 - Externalities
  • D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
  • D64 - Altruism; Philanthropy
  • Browse content in D7 - Analysis of Collective Decision-Making
  • D70 - General
  • D71 - Social Choice; Clubs; Committees; Associations
  • D72 - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
  • D73 - Bureaucracy; Administrative Processes in Public Organizations; Corruption
  • D74 - Conflict; Conflict Resolution; Alliances; Revolutions
  • D78 - Positive Analysis of Policy Formulation and Implementation
  • Browse content in D8 - Information, Knowledge, and Uncertainty
  • D80 - General
  • D81 - Criteria for Decision-Making under Risk and Uncertainty
  • D82 - Asymmetric and Private Information; Mechanism Design
  • D83 - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
  • D84 - Expectations; Speculations
  • D85 - Network Formation and Analysis: Theory
  • D86 - Economics of Contract: Theory
  • Browse content in D9 - Micro-Based Behavioral Economics
  • D90 - General
  • D91 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
  • D92 - Intertemporal Firm Choice, Investment, Capacity, and Financing
  • Browse content in E - Macroeconomics and Monetary Economics
  • Browse content in E0 - General
  • E03 - Behavioral Macroeconomics
  • Browse content in E1 - General Aggregative Models
  • E10 - General
  • E12 - Keynes; Keynesian; Post-Keynesian
  • E13 - Neoclassical
  • E17 - Forecasting and Simulation: Models and Applications
  • Browse content in E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy
  • E20 - General
  • E21 - Consumption; Saving; Wealth
  • E22 - Investment; Capital; Intangible Capital; Capacity
  • E23 - Production
  • E24 - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
  • E25 - Aggregate Factor Income Distribution
  • E26 - Informal Economy; Underground Economy
  • E27 - Forecasting and Simulation: Models and Applications
  • Browse content in E3 - Prices, Business Fluctuations, and Cycles
  • E30 - General
  • E31 - Price Level; Inflation; Deflation
  • E32 - Business Fluctuations; Cycles
  • E37 - Forecasting and Simulation: Models and Applications
  • Browse content in E4 - Money and Interest Rates
  • E40 - General
  • E41 - Demand for Money
  • E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
  • E43 - Interest Rates: Determination, Term Structure, and Effects
  • E44 - Financial Markets and the Macroeconomy
  • E49 - Other
  • Browse content in E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit
  • E50 - General
  • E51 - Money Supply; Credit; Money Multipliers
  • E52 - Monetary Policy
  • E58 - Central Banks and Their Policies
  • Browse content in E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
  • E60 - General
  • E61 - Policy Objectives; Policy Designs and Consistency; Policy Coordination
  • E62 - Fiscal Policy
  • E65 - Studies of Particular Policy Episodes
  • Browse content in E7 - Macro-Based Behavioral Economics
  • E70 - General
  • E71 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on the Macro Economy
  • Browse content in F - International Economics
  • Browse content in F1 - Trade
  • F10 - General
  • F11 - Neoclassical Models of Trade
  • F12 - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
  • F13 - Trade Policy; International Trade Organizations
  • F14 - Empirical Studies of Trade
  • F15 - Economic Integration
  • F16 - Trade and Labor Market Interactions
  • F17 - Trade Forecasting and Simulation
  • F18 - Trade and Environment
  • F19 - Other
  • Browse content in F2 - International Factor Movements and International Business
  • F20 - General
  • F21 - International Investment; Long-Term Capital Movements
  • F22 - International Migration
  • F23 - Multinational Firms; International Business
  • Browse content in F3 - International Finance
  • F30 - General
  • F31 - Foreign Exchange
  • F32 - Current Account Adjustment; Short-Term Capital Movements
  • F33 - International Monetary Arrangements and Institutions
  • F34 - International Lending and Debt Problems
  • F36 - Financial Aspects of Economic Integration
  • Browse content in F4 - Macroeconomic Aspects of International Trade and Finance
  • F40 - General
  • F41 - Open Economy Macroeconomics
  • F42 - International Policy Coordination and Transmission
  • F43 - Economic Growth of Open Economies
  • F44 - International Business Cycles
  • Browse content in F5 - International Relations, National Security, and International Political Economy
  • F50 - General
  • F53 - International Agreements and Observance; International Organizations
  • Browse content in F6 - Economic Impacts of Globalization
  • F60 - General
  • F62 - Macroeconomic Impacts
  • F63 - Economic Development
  • F64 - Environment
  • F65 - Finance
  • Browse content in G - Financial Economics
  • Browse content in G0 - General
  • G01 - Financial Crises
  • G02 - Behavioral Finance: Underlying Principles
  • Browse content in G1 - General Financial Markets
  • G10 - General
  • G11 - Portfolio Choice; Investment Decisions
  • G12 - Asset Pricing; Trading volume; Bond Interest Rates
  • G13 - Contingent Pricing; Futures Pricing
  • G14 - Information and Market Efficiency; Event Studies; Insider Trading
  • G15 - International Financial Markets
  • G18 - Government Policy and Regulation
  • Browse content in G2 - Financial Institutions and Services
  • G20 - General
  • G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
  • G22 - Insurance; Insurance Companies; Actuarial Studies
  • G23 - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
  • G24 - Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
  • G28 - Government Policy and Regulation
  • Browse content in G3 - Corporate Finance and Governance
  • G30 - General
  • G31 - Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
  • G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
  • G33 - Bankruptcy; Liquidation
  • G34 - Mergers; Acquisitions; Restructuring; Corporate Governance
  • G38 - Government Policy and Regulation
  • Browse content in G4 - Behavioral Finance
  • G40 - General
  • G41 - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
  • Browse content in H - Public Economics
  • Browse content in H0 - General
  • H00 - General
  • Browse content in H1 - Structure and Scope of Government
  • H11 - Structure, Scope, and Performance of Government
  • Browse content in H2 - Taxation, Subsidies, and Revenue
  • H20 - General
  • H21 - Efficiency; Optimal Taxation
  • H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
  • H24 - Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
  • H25 - Business Taxes and Subsidies
  • H26 - Tax Evasion and Avoidance
  • Browse content in H3 - Fiscal Policies and Behavior of Economic Agents
  • H30 - General
  • H31 - Household
  • Browse content in H4 - Publicly Provided Goods
  • H41 - Public Goods
  • Browse content in H5 - National Government Expenditures and Related Policies
  • H50 - General
  • H51 - Government Expenditures and Health
  • H52 - Government Expenditures and Education
  • H53 - Government Expenditures and Welfare Programs
  • H55 - Social Security and Public Pensions
  • H56 - National Security and War
  • Browse content in H6 - National Budget, Deficit, and Debt
  • H60 - General
  • H63 - Debt; Debt Management; Sovereign Debt
  • Browse content in H7 - State and Local Government; Intergovernmental Relations
  • H71 - State and Local Taxation, Subsidies, and Revenue
  • H75 - State and Local Government: Health; Education; Welfare; Public Pensions
  • Browse content in H8 - Miscellaneous Issues
  • H81 - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
  • Browse content in I - Health, Education, and Welfare
  • Browse content in I0 - General
  • I00 - General
  • Browse content in I1 - Health
  • I10 - General
  • I11 - Analysis of Health Care Markets
  • I12 - Health Behavior
  • I13 - Health Insurance, Public and Private
  • I14 - Health and Inequality
  • I15 - Health and Economic Development
  • I18 - Government Policy; Regulation; Public Health
  • Browse content in I2 - Education and Research Institutions
  • I20 - General
  • I21 - Analysis of Education
  • I22 - Educational Finance; Financial Aid
  • I23 - Higher Education; Research Institutions
  • I24 - Education and Inequality
  • I25 - Education and Economic Development
  • I26 - Returns to Education
  • I28 - Government Policy
  • Browse content in I3 - Welfare, Well-Being, and Poverty
  • I30 - General
  • I31 - General Welfare
  • I32 - Measurement and Analysis of Poverty
  • I38 - Government Policy; Provision and Effects of Welfare Programs
  • I39 - Other
  • Browse content in J - Labor and Demographic Economics
  • Browse content in J0 - General
  • J00 - General
  • J01 - Labor Economics: General
  • J08 - Labor Economics Policies
  • Browse content in J1 - Demographic Economics
  • J10 - General
  • J11 - Demographic Trends, Macroeconomic Effects, and Forecasts
  • J12 - Marriage; Marital Dissolution; Family Structure; Domestic Abuse
  • J13 - Fertility; Family Planning; Child Care; Children; Youth
  • J14 - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
  • J15 - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
  • J16 - Economics of Gender; Non-labor Discrimination
  • J17 - Value of Life; Forgone Income
  • Browse content in J2 - Demand and Supply of Labor
  • J20 - General
  • J21 - Labor Force and Employment, Size, and Structure
  • J22 - Time Allocation and Labor Supply
  • J23 - Labor Demand
  • J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
  • Browse content in J3 - Wages, Compensation, and Labor Costs
  • J30 - General
  • J31 - Wage Level and Structure; Wage Differentials
  • J32 - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
  • J33 - Compensation Packages; Payment Methods
  • J38 - Public Policy
  • Browse content in J4 - Particular Labor Markets
  • J41 - Labor Contracts
  • J42 - Monopsony; Segmented Labor Markets
  • J44 - Professional Labor Markets; Occupational Licensing
  • J47 - Coercive Labor Markets
  • Browse content in J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining
  • J50 - General
  • J52 - Dispute Resolution: Strikes, Arbitration, and Mediation; Collective Bargaining
  • Browse content in J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers
  • J60 - General
  • J61 - Geographic Labor Mobility; Immigrant Workers
  • J62 - Job, Occupational, and Intergenerational Mobility
  • J63 - Turnover; Vacancies; Layoffs
  • J64 - Unemployment: Models, Duration, Incidence, and Job Search
  • J65 - Unemployment Insurance; Severance Pay; Plant Closings
  • J68 - Public Policy
  • Browse content in J7 - Labor Discrimination
  • J71 - Discrimination
  • Browse content in J8 - Labor Standards: National and International
  • J81 - Working Conditions
  • J82 - Labor Force Composition
  • J83 - Workers' Rights
  • Browse content in K - Law and Economics
  • Browse content in K0 - General
  • K00 - General
  • Browse content in K1 - Basic Areas of Law
  • K14 - Criminal Law
  • Browse content in K3 - Other Substantive Areas of Law
  • K31 - Labor Law
  • K33 - International Law
  • K35 - Personal Bankruptcy Law
  • Browse content in K4 - Legal Procedure, the Legal System, and Illegal Behavior
  • K40 - General
  • K41 - Litigation Process
  • K42 - Illegal Behavior and the Enforcement of Law
  • Browse content in L - Industrial Organization
  • Browse content in L0 - General
  • L00 - General
  • Browse content in L1 - Market Structure, Firm Strategy, and Market Performance
  • L10 - General
  • L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
  • L12 - Monopoly; Monopolization Strategies
  • L13 - Oligopoly and Other Imperfect Markets
  • L14 - Transactional Relationships; Contracts and Reputation; Networks
  • L15 - Information and Product Quality; Standardization and Compatibility
  • Browse content in L2 - Firm Objectives, Organization, and Behavior
  • L20 - General
  • L22 - Firm Organization and Market Structure
  • L23 - Organization of Production
  • L25 - Firm Performance: Size, Diversification, and Scope
  • Browse content in L3 - Nonprofit Organizations and Public Enterprise
  • L31 - Nonprofit Institutions; NGOs; Social Entrepreneurship
  • Browse content in L4 - Antitrust Issues and Policies
  • L41 - Monopolization; Horizontal Anticompetitive Practices
  • L42 - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
  • L43 - Legal Monopolies and Regulation or Deregulation
  • Browse content in L5 - Regulation and Industrial Policy
  • L50 - General
  • L51 - Economics of Regulation
  • Browse content in L6 - Industry Studies: Manufacturing
  • L60 - General
  • L62 - Automobiles; Other Transportation Equipment; Related Parts and Equipment
  • L63 - Microelectronics; Computers; Communications Equipment
  • Browse content in L7 - Industry Studies: Primary Products and Construction
  • L71 - Mining, Extraction, and Refining: Hydrocarbon Fuels
  • Browse content in L8 - Industry Studies: Services
  • L81 - Retail and Wholesale Trade; e-Commerce
  • L82 - Entertainment; Media
  • L86 - Information and Internet Services; Computer Software
  • Browse content in L9 - Industry Studies: Transportation and Utilities
  • L93 - Air Transportation
  • L94 - Electric Utilities
  • L96 - Telecommunications
  • Browse content in M - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics
  • Browse content in M0 - General
  • M00 - General
  • Browse content in M1 - Business Administration
  • M11 - Production Management
  • M14 - Corporate Culture; Social Responsibility
  • Browse content in M2 - Business Economics
  • M21 - Business Economics
  • Browse content in M3 - Marketing and Advertising
  • M31 - Marketing
  • M37 - Advertising
  • Browse content in M5 - Personnel Economics
  • M50 - General
  • M51 - Firm Employment Decisions; Promotions
  • M52 - Compensation and Compensation Methods and Their Effects
  • M54 - Labor Management
  • M55 - Labor Contracting Devices
  • Browse content in N - Economic History
  • Browse content in N1 - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
  • N10 - General, International, or Comparative
  • N13 - Europe: Pre-1913
  • Browse content in N2 - Financial Markets and Institutions
  • N20 - General, International, or Comparative
  • Browse content in N3 - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
  • N31 - U.S.; Canada: Pre-1913
  • N32 - U.S.; Canada: 1913-
  • N33 - Europe: Pre-1913
  • N34 - Europe: 1913-
  • Browse content in N4 - Government, War, Law, International Relations, and Regulation
  • N42 - U.S.; Canada: 1913-
  • N43 - Europe: Pre-1913
  • N44 - Europe: 1913-
  • N45 - Asia including Middle East
  • Browse content in N9 - Regional and Urban History
  • N90 - General, International, or Comparative
  • N92 - U.S.; Canada: 1913-
  • N94 - Europe: 1913-
  • Browse content in O - Economic Development, Innovation, Technological Change, and Growth
  • Browse content in O1 - Economic Development
  • O10 - General
  • O11 - Macroeconomic Analyses of Economic Development
  • O12 - Microeconomic Analyses of Economic Development
  • O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
  • O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
  • O15 - Human Resources; Human Development; Income Distribution; Migration
  • O16 - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
  • O17 - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
  • O18 - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
  • Browse content in O2 - Development Planning and Policy
  • O23 - Fiscal and Monetary Policy in Development
  • Browse content in O3 - Innovation; Research and Development; Technological Change; Intellectual Property Rights
  • O30 - General
  • O31 - Innovation and Invention: Processes and Incentives
  • O32 - Management of Technological Innovation and R&D
  • O33 - Technological Change: Choices and Consequences; Diffusion Processes
  • O34 - Intellectual Property and Intellectual Capital
  • O38 - Government Policy
  • Browse content in O4 - Economic Growth and Aggregate Productivity
  • O40 - General
  • O41 - One, Two, and Multisector Growth Models
  • O42 - Monetary Growth Models
  • O43 - Institutions and Growth
  • O44 - Environment and Growth
  • O47 - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
  • Browse content in O5 - Economywide Country Studies
  • O51 - U.S.; Canada
  • O55 - Africa
  • Browse content in P - Economic Systems
  • Browse content in P0 - General
  • P00 - General
  • Browse content in P1 - Capitalist Systems
  • P16 - Political Economy
  • Browse content in P2 - Socialist Systems and Transitional Economies
  • P26 - Political Economy; Property Rights
  • Browse content in Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
  • Browse content in Q1 - Agriculture
  • Q15 - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
  • Q16 - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
  • Browse content in Q3 - Nonrenewable Resources and Conservation
  • Q33 - Resource Booms
  • Browse content in Q4 - Energy
  • Q41 - Demand and Supply; Prices
  • Q43 - Energy and the Macroeconomy
  • Browse content in Q5 - Environmental Economics
  • Q51 - Valuation of Environmental Effects
  • Q52 - Pollution Control Adoption Costs; Distributional Effects; Employment Effects
  • Q53 - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
  • Q54 - Climate; Natural Disasters; Global Warming
  • Q55 - Technological Innovation
  • Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
  • Q58 - Government Policy
  • Browse content in R - Urban, Rural, Regional, Real Estate, and Transportation Economics
  • Browse content in R1 - General Regional Economics
  • R10 - General
  • R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
  • R12 - Size and Spatial Distributions of Regional Economic Activity
  • R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies
  • R15 - Econometric and Input-Output Models; Other Models
  • Browse content in R2 - Household Analysis
  • R21 - Housing Demand
  • R23 - Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
  • Browse content in R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location
  • R31 - Housing Supply and Markets
  • R33 - Nonagricultural and Nonresidential Real Estate Markets
  • Browse content in R4 - Transportation Economics
  • R41 - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
  • R48 - Government Pricing and Policy
  • Browse content in R5 - Regional Government Analysis
  • R51 - Finance in Urban and Rural Economies
  • Browse content in Z - Other Special Topics
  • Browse content in Z1 - Cultural Economics; Economic Sociology; Economic Anthropology
  • Z10 - General
  • Z12 - Religion
  • Z13 - Economic Sociology; Economic Anthropology; Social and Economic Stratification
  • Author Guidelines
  • Submission Site
  • Open Access
  • About The Review of Economic Studies
  • Editorial Board
  • Advertising and Corporate Services
  • Self-Archiving Policy
  • Dispatch Dates
  • Journals on Oxford Academic
  • Books on Oxford Academic

Article Contents

  • < Previous

Resale Markets and the Assignment of Property Rights

  • Article contents
  • Figures & tables
  • Supplementary Data

Philippe Jehiel, Benny Moldovanu, Resale Markets and the Assignment of Property Rights, The Review of Economic Studies , Volume 66, Issue 4, October 1999, Pages 971–991, https://doi.org/10.1111/1467-937X.00116

  • Permissions Icon Permissions

The consumption of an indivisible good causes identity-dependent externalities to non-consumers. We analyse resale markets where the current owner designs the trading procedure, but cannot commit to future actions. We ask the following questions: (1) Does the identity of the initial owner matter for the determination of the final consumer? (2) Is the outcome always efficient? The major conclusion of our paper is that the irrelevance of the initial structure of property rights arises in resale processes even if there are transaction costs that hinder efficiency. This result complements the Coasian view where the irrelevance of the assignment of property rights is a consequence of efficiency.

Email alerts

Citing articles via.

  • Recommend to your Library
  • Journals Career Network

Affiliations

  • Online ISSN 1467-937X
  • Print ISSN 0034-6527
  • Copyright © 2024 Review of Economic Studies Ltd
  • About Oxford Academic
  • Publish journals with us
  • University press partners
  • What we publish
  • New features  
  • Open access
  • Institutional account management
  • Rights and permissions
  • Get help with access
  • Accessibility
  • Advertising
  • Media enquiries
  • Oxford University Press
  • Oxford Languages
  • University of Oxford

Oxford University Press is a department of the University of Oxford. It furthers the University's objective of excellence in research, scholarship, and education by publishing worldwide

  • Copyright © 2024 Oxford University Press
  • Cookie settings
  • Cookie policy
  • Privacy policy
  • Legal notice

This Feature Is Available To Subscribers Only

Sign In or Create an Account

This PDF is available to Subscribers Only

For full access to this pdf, sign in to an existing account, or purchase an annual subscription.

Law Offices of Dennis Fordham

  • Business Succession Planning
  • Legacy and Estate Planning California
  • Planned Giving
  • Special Needs Planning
  • Trust and Probate Administration
  • BUSINESS SUCCESSION PLANNING
  • CALIFORNIA LEGACY AND ESTATE PLANNING
  • PLANNED GIVING
  • TRUST AND PROBATE ADMINISTRATION
  • SPECIAL NEEDS PLANNING
  • Testimonial

Assignments, Disclaimers and Powers of Appointment

          Assignments, Disclaimers and Powers of Appointment can alter the distribution of a decedent’s estate.    

          First what is and who can make an assignment? A person who has a vested — legally enforceable — interest in a decedent’s estate can “assign” – i.e., transfer – part or all of their interest to another. Generally, an inheritance vests upon the decedent’s death.  An assignment is a gift by the assignor making the assignment to the assignee receiving the assigned interest.    Assignments create tax issues for both the assignor and assignee.   

          For example, consider an unmarried father who dies intestate — without a will or trust – and is survived by a son and a daughter — his heirs.  Prior to settling dad’s estate, the son decides to give his one-half share to his sister and signs and notarizes an assignment of inheritance rights.  The assignment is then filed with the Court.  Dad’s estate, less expenses and debts, is distributed entirely to the daughter. 

          If an interest in real property inherited from a parent is assigned then the parent child exclusion from reassessment — for local real property taxes — only applies to the interest(s) belonging to the child(ren) who do not assign their interest(s).  There is no reassessment exclusion for any transfers between siblings.

          Assignments, however, almost never apply to a beneficiary’s interests in a trust.  Usually, a trust prohibits beneficiaries from assigning their interest in the trust before distribution.  The anti-assignment provision protects undistributed trust assets from claims by a beneficiary’s creditors. 

          Next, disclaimers are used when a beneficiary, or heir, refuses to accept a gift or inheritance.  You cannot force someone to receive a gift or an inheritance.  To be valid disclaimers must satisfy the following requirements: be unconditional, be in writing, and be timely (i.e., generally, within nine months of the transfer), and, when real property is involved, also be filed with the county recorder where the real property lies.  Unlike assignments, the person disclaiming their interest cannot say who receives the disclaimed interest.  A disclaimer is not a gift by the person disclaiming.  Lastly, one cannot have accepted any benefits from the property being disclaimed, such as the income from an income producing asset. 

          The person disclaiming their gift or inheritance is treated as if they had predeceased the person who made the gift.  We see who is then entitled to inherit. 

          For example, a decedent’s trust leaves a share of the decedent’s trust estate to a named beneficiary and otherwise, if he does not survive to inherit, to the beneficiary’s descendants by right of representation.  The beneficiary survives and timely disclaims.  The beneficiary’s living descendants would then inherit by right of representation. 

          Unlike assignments and disclaimers, powers of appointment are created within a person’s estate planning, e.g., a trust or will, for future use.  A power of appointment allows the power holder to say who receives a gift/distribution from a trust or an estate.  The power of appointment is either a limited power that allows gifting to certain persons or is a general power that allows gifting to anyone at all, including the power holder, the power holder’s estate and the power holder’s creditors.  Powers of appointment are used for a variety of estate planning reasons. 

          For example, a husband’s and wife’s joint estate planning may give the spouse who survives a limited power of appointment over the deceased spouse’s separate trust estate.  The limited power of appointment might allow the deceased spouse’s estate to be divided equally or unequally amongst the deceased spouse’s children as the surviving spouse sees fit after the deceased spouse’s death.

          Anyone who wants to proceed with making an assignment, a disclaimer or exercise of a power of appointment should consult a qualified attorney.  There are tax and other issues to discuss and drafting requirements to these legal instruments that benefit from the expertise of a qualified attorney. 

“Serving Lake and Mendocino Counties for nineteen years, the Law Office of Dennis Fordham focuses on legacy and estate planning, trust and probate administration, and special needs planning. We are here for you. 870 South Main Street Lakeport, California 95453-4801. Phone: 707-263-3235.”

Practice Areas

  • Legacy and Estate Planning

Upcoming Events

Why a Trust and Not a Will? Seminar

Community Event Announcement

Please call if you want to be notified of our next upcoming seminar.

Event Sign Up

Stay current on news & events. we’ll never share your address..

  • Enter Email

© 2024 Dennis A. Fordham All Rights Reserved

Law Firm Sites

The Assignment of Property Rights on the Western Frontier: Lessons for Contemporary Environmental and Resource Policy

In addressing environmental and natural resource problems, there is a move away from primary reliance upon centralized regulation toward assignment of property rights to mitigate the losses of open-access. I examine the assignment of private property rights during the 19th and early 20th centuries to five natural resources, mineral land, timberland, grazing and farm land, and water on federal government lands in the Far West. The region was richly endowed with natural resources, but assigning property rights to them required adaptation from established, eastern practices as defined by the federal land laws. The property rights that emerged and their long-term welfare effects provide a laboratory for examining current questions of institutional design to address over-fishing, excessive air pollution, and other natural resource and environmental problems. A major lesson is that property rights allocations based on local conditions, prior use, and unconstrained by outside government mandates were most effective in addressing not only the immediate threat of open-access, but in providing a longer-term basis for production, investment, and trade. Another lesson is how hard it is to repair initial faulty property allocations. Accordingly, path dependencies in property rules are real, and they have dominated the economic history of resource use in the West.

Prepared as the Presidential Address for the Economic History Association Meetings, September 14-17, Pittsburgh, Pennsylvania. Helpful comments were provided by Lee Alston, Terry Anderson, Bob Deacon, Charlie Kolstad, and Zeynep Hansen. Support for this research was provided by National Science Foundation Grant 0317375, the Hoover Institution, and the Earhart Foundation. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

MARC RIS BibTeΧ

Download Citation Data

Published Versions

More from nber.

In addition to working papers , the NBER disseminates affiliates’ latest findings through a range of free periodicals — the NBER Reporter , the NBER Digest , the Bulletin on Retirement and Disability , the Bulletin on Health , and the Bulletin on Entrepreneurship  — as well as online conference reports , video lectures , and interviews .

15th Annual Feldstein Lecture, Mario Draghi, "The Next Flight of the Bumblebee: The Path to Common Fiscal Policy in the Eurozone cover slide

Introduction to the Coase Theorem

This theory explains how bargaining helps settle property disputes

RF / Ditto / Image Source / Getty Images

  • U.S. Economy
  • Supply & Demand
  • Archaeology
  • Ph.D., Business Economics, Harvard University
  • M.A., Economics, Harvard University
  • B.S., Massachusetts Institute of Technology

The Coase Theorem, developed by economist Ronald Coase, states that when conflicting property rights occur, bargaining between the parties involved will lead to an efficient outcome regardless of which party is ultimately awarded the property rights, as long as the transaction costs associated with bargaining are negligible. Specifically, the Coase Theorem states that "if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.”

What Is the Coase Theorem?

The Coase Theorem is most easily explained via an example. It's clear that noise pollution fits the typical definition of an externality , or a consequence of an economic activity on an unrelated third party, because noise pollution from, say, a factory, a loud garage band, or a wind turbine potentially imposes a cost on people who are neither consumers nor producers of these items. (Technically, this externality comes about because it's not well defined who owns the noise spectrum.)

In the case of the wind turbine, for example, it's efficient to let the turbine make noise if the value of operating the turbine is greater than the noise cost imposed on those who live near it. On the other hand, it's efficient to shut the turbine down if the value of operating the turbine is less than the noise cost imposed on nearby residents.

Since the potential rights and desires of the turbine company and the households are clearly in conflict, it's possible that the two parties will end up in court to figure out whose rights take precedence. In this instance, the court could decide that the turbine company has the right to operate at the expense of the nearby households or that the households have the right to quiet at the expense of the turbine company's operations. Coase's main thesis is that the decision reached regarding the assignment of property rights has no bearing on whether the turbines continue to operate in the area as long as the parties can bargain without cost.

How Does It Work in Practice?

Why is this? Let's say that it's efficient to have the turbines operating in the area, i.e., that the value to the company of operating the turbines is greater than the cost imposed on the households. Put another way, this means that the turbine company would be willing to pay the households more to stay in business than the households would be willing to pay the turbine company to shut down. If the court decides that the households have a right to quiet, the turbine company will probably compensate the households in exchange for letting the turbines operate. Because the turbines are worth more to the company than quiet is worth to the households, some offer will be acceptable to both parties, and the turbines will keep running.

On the other hand, if the court decides that the company has the right to operate the turbines, the turbines will stay in business and no money will change hands. This is because the households aren't willing to pay enough to convince the turbine company to cease operation.

In summary, the assignment of rights in this example didn't affect the outcome once the opportunity to bargain was introduced, but the property rights did affect the transfers of money between the two parties. This scenario is realistic: In 2010, for example, Caithness Energy offered households near its turbines in Eastern Oregon $5,000 each not to complain about the noise that the turbines generated.

It's most likely that in this scenario, the value of operating the turbines was greater to the company than the value of quiet was to the households, and it was probably easier for the company to proactively offer compensation to the households than it would have been to get the courts involved.

Why Would the Coase Theorem Not Work?

In practice, there are a number of reasons why the Coase Theorem may not hold (or apply, depending on context). In some cases, the endowment effect could cause the valuations elicited in negotiation to depend on the initial allocation of property rights. In other cases, negotiation may not be feasible either due to the number of parties involved or social conventions.

  • Introduction to Externalities
  • A Negative Externality on Production
  • Breakdown of Positive and Negative Externalities in a Market
  • Different Types of Jet Engines
  • What Is Collective Bargaining?
  • Introduction to Price Supports
  • The 7 Most Important Eminent Domain Cases
  • What Is a Positive Externality on Consumption?
  • What is a Closed Shop in the Workplace?
  • Lester Allan Pelton and the Invention of Hydroelectric Power
  • The Fundamentals of SQL
  • The Economics of Price Gouging
  • Properties and Functions of Money as Currency vs. Wealth
  • FAQ: What is Electricity?
  • What Is an Amicus Brief?
  • The 4 Different Types of Goods

n this browser, the site may not be displayed correctly. We recommend that You install a more modern browser.

Gorodissky & Partners

  • Firm's structure
  • For Clients

PATENT & TM ATTORNEYS PRACTICE

  • Inventions & Utility Models
  • Industrial Designs
  • Plant Varieties and Animal Breeds
  • International Patenting
  • Patent Information Services
  • Patent Clearance Search
  • Preparation of Clearance Opinions
  • Opinion on Trademark Infringement
  • Geographical Indications and Appellations of Origin of goods
  • Software, Databases, Topographies
  • Maintenance of Registered IP Rights

LAWYERS PRACTICE

  • Strategic Consulting
  • Dispute Resolution and Litigation
  • IP Enforcement and Anti-counterfeiting
  • On-line monitoring and enforcement services
  • Copyright and Related Rights
  • Unfair Competition and False Advertising
  • Advertising and Media
  • IP Due Diligence and Audit
  • IP Taxation and Accounting
  • IP Transactions
  • Domain Names and Websites
  • Internet and E-Commerce
  • Trade Secrets and Know-How
  • IT, Data Protection and Privacy
  • Telecommunications
  • Publications
  • G-newsletters
  • Legal updates
  • В«GorodisskyВ» in media
  • Subscription
  • Moscow phone: +7 (495) 937-6116
  • Kazan phone: +7 (843) 236-32-32 phone: +7 (843) 236-43-43 phone: +7 (843) 247-22-44
  • Vladivostok phone: + 7 (423) 246-91-00
  • N. Novgorod phone: +7 (831) 430-73-39
  • Novosibirsk phone: +7 (383) 209 3045
  • Dubna phone: +7 (496) 219-92-99 phone: +7 (496) 219-92-29
  • Astana phone: +7 (7172) 270901
  • Dubai phone: +971 43 55 4882
  • St. Petersburg phone: +7 (812) 327-50-56 phone: +7 (812) 233-07-09
  • Ekaterinburg phone: +7 (343) 351-13-83
  • Samara phone: +7 (846) 270-26-12
  • Krasnodar phone: +7 (861) 210-08-66
  • Sarov phone: +7 (831) 344-52-75
  • Perm phone: +7 (342) 259-54-38
  • Ufa phone: +7 (347) 286 5861
  • Kyiv phone: +380 (44) 501-18-71

Gorodissky & Partners.

Gorodissky & Partners is the biggest IP law firm with offices in Russia, Kazakhstan, Ukraine and UAE. Our IP attorneys and lawyers assist in protection and enforcement of exclusive rights for various intellectual property subject-matters including inventions, utility models, industrial designs, trademarks, geographical indications, appellations of origin, plant varieties and animal breeds, computer programs, databases, works of science, literature and arts; represent clients in Patent and Trademark Offices, courts, antimonopoly and law enforcement bodies; draft assignment agreements, license agreements, security agreements and franchise agreements; register the disposal (transfer or grant) of IP rights; conduct IP due diligence; provide legal advice on the repression of unfair competition and enforcement of IP rights, information technologies, media and telecommunications (TMT), Internet-related issues and e-commerce, advertising and promotion of goods (services), data protection and privacy, tax structuring and other taxation aspects, fighting against counterfeit goods and pirate content. The firm serves national and multinational clients (companies and corporations) from around the globe.

Most of our IP attorneys and lawyers have their length of service in consultancy of clients from 5 to 40 years. Many professionals joined our firm with more than half a century history after having worked for law and consulting firms, industrial companies, R&D centers and the Patent Offices.

Prestigious educational background and PhDs, practical knowledge and skills in various fields of science and technology, law and finance enable our IP attorneys and lawyers to propose to national and international clients most efficient solutions for protection of IP rights.

We care about optimal expenses of clients and recommend them appropriate and the most efficient proceedings of registration and enforcement of IP rights. Our pricing policy is flexible and meets expectations of the clients.

More than 10,000 clients being large industrial companies and SMEs, R&D centers and innovation start-ups, universities and financial institutions lay their trust on us. Professional liability of our IP attorneys (100+) and lawyers (30+) practicing in 16 offices of the firm is ensured for dozens of USD millions.

We closely cooperate with in-house IP teams of clients for better understanding commercial objectives facing them so that we could offer the clients IP strategies, which are suitable for their business strategies.

Our firm employs highly qualified professionals in the field of intellectual property. IP attorneys and lawyers of the firm regularly earn high recognition in national and international professional rankings. In 2020 the firm has been successfully certified for compliance with ISO 9001:2015.

В«GORODISSKY & PARTNERSВ» IN NUMBERS

390+ SPECIALISTS

120+ IP ATTORNEYS

30+ LAWYERS

60+ YEARS OF SUCCESSFUL PRACTICE

16 OFFICES IN RUSSIA, UKRAINE, KAZAKHSTAN AND UAE

10 000+ CLIENTS

IAM Patent 1000

В© Law Firm Gorodissky & Partners, 2024

Website Design пїЅ Artus Internet agency

  • Terms of service

Your message has been sent

Request a call.

code img

Ask a question

code img

CALCULATE national patents/trademarks

Dear Sender, Your message has been submitted. Thank you for using Gorodissky & Partners online maintenance system. Please ensure that our confirmation of receipt has reached your e-mail indicated in the feedback form. In the absence of the same you are strongly requested to contact us by [email protected] Sincerely yours, IP Renewals & Recordals Department

About eurasian patent

Dear sender,, your cv has been sent.

  • Select location
  • United Kingdom
  • United States

Federal Circuit Reversal in Assignment Clause Case Highlights Importance of Contract Language in Intellectual Property Ownership

Internet Connection - Shutterstock 1490106461

Contributors

Jeffrey Whittle Profile Image

Jeffrey S. Whittle

Professional woman in business attire smiling against a white background.

Karthika Perumal, Ph.D.

assignment of property rights

Samuel A. Savanich

In a split opinion issued Tuesday , and based on language in an assignment clause of a contract, the Federal Circuit overturned a district court's summary judgment that Core Optical lacked standing to sue Nokia, Cisco, and ADVA for infringement.

The case, involving a fiber optic patent, centers on the interpretation of the phrase "entirely on my own time" within an assignment clause of the inventor's contractual agreement with his former employer, TRW Inc.

Nokia, Cisco, and ADVA contended that Dr. Mark Core's assignment of his patent rights to Core Optical was invalid because these rights allegedly had been automatically assigned to Dr. Core's employer, TRW, at the time of the invention. The inventor's contract with TRW stipulated that any inventions developed during work hours were to be assigned to the company, while inventions developed entirely on his “own time” remained Dr. Core’s property.

Initially, the lower court granted Nokia and the defendants summary judgment, ruling that the invention was developed as part of the Dr. Core’s research, funded by TRW, and was at least in part “TRW time” and not “entirely” Dr. Core’s “own time.” Therefore, this court concluded that the patent was automatically assigned to TRW, and Core Optical, Dr. Core’s company, lacked standing to sue.

The Federal Circuit majority, however, decided on appeal that it was not clear if the Ph.D. research conducted by Dr. Core constituted the inventor's own time. On one hand, Dr. Core was free to use particular hours or days for his research with no accountability to TRW; and, on the other hand, he worked on projects connected to TRW’s business on TRW-funded fellowship, with reporting obligations to TRW. Therefore, the Federal Circuit vacated the judgment and remanded the case back to the district court for further proceedings, thereby allowing Dr. Core to proceed with his patent infringement lawsuit.

The majority opinion noted, “[b]oth Core Optical’s and Nokia's interpretations of how the years-long, TRW-funded research should be treated under the 1990 invention agreement are plausible based on the undisputed facts presented. However, which interpretation prevails has not been determined, acknowledging that the contract language does not have an unambiguous meaning when applied to these facts.”

In dissent, U.S. Circuit Court Judge Haldane Robert Mayer argued that the lower court was correct in ruling that the inventor did not develop the fiber optic patent on his own time.

This majority decision underscores the complexities and nuances surrounding intellectual property rights and the importance of clear contractual terms regarding intellectual property issues, especially for intellectual property developed by an individual during non-traditional employment, such as employees permitted to pursue research or consulting projects. Care should be taken when drafting assignment and other intellectual property related language to reduce risk of a finding of ambiguity as in this instance.

Womble Bond Dickinson Newsletter

Sign up to receive fresh content delivered to your inbox weekly!

Recommended

How are the uspto’s proposed rule changes for terminal disclaimers problematic: let me count the ways, doj announces new task force on health care monopolies and collusion, ftc claims against pe firm put to sleep, enhancing trade-based money laundering detection: retrieval-augmented generation and semantic search technologies, supreme court rules copyright claims timeless with timely filing, irs publishes final regulations for transfer of certain credits, what to expect from the select committee on the chinese communist party under the leadership of chairman moolenaar, dea accepts hhs recommendation to reschedule cannabis, doj enhancing its sanctions toolkit, ftc issues new rule—but not the final chapter—on non-competes: what employers need to know, criminal division of u.s. department of justice announces pilot program on voluntary self-disclosure for individuals.

You are switching to the United States

This selection will switch the website from presenting information primarily about the United Kingdom to information about the United States . If you would like to switch back, you may use location selection options at the top of the page.

Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any legal matter until we authorize you to do so. To initiate a possible representation, please call one of our lawyers or staff members.

By clicking the “ACCEPT” button, you agree that we may review any information you transmit to us. You recognize that, even if you submit information that you consider confidential in an effort to retain us, our review of that information will not create an obligation on us to keep it confidential and will not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.

Please click the “ACCEPT” button if you understand and accept the foregoing statement and wish to proceed.

  • Work & Careers
  • Life & Arts

Become an FT subscriber

Try unlimited access Only $1 for 4 weeks

Then $75 per month. Complete digital access to quality FT journalism on any device. Cancel anytime during your trial.

  • Global news & analysis
  • Expert opinion
  • Special features
  • FirstFT newsletter
  • Videos & Podcasts
  • Android & iOS app
  • FT Edit app
  • 10 gift articles per month

Explore more offers.

Standard digital.

  • FT Digital Edition

Premium Digital

Print + premium digital, ft professional, weekend print + standard digital, weekend print + premium digital.

Essential digital access to quality FT journalism on any device. Pay a year upfront and save 20%.

  • Global news & analysis
  • Exclusive FT analysis
  • FT App on Android & iOS
  • FirstFT: the day's biggest stories
  • 20+ curated newsletters
  • Follow topics & set alerts with myFT
  • FT Videos & Podcasts
  • 20 monthly gift articles to share
  • Lex: FT's flagship investment column
  • 15+ Premium newsletters by leading experts
  • FT Digital Edition: our digitised print edition
  • Weekday Print Edition
  • Videos & Podcasts
  • Premium newsletters
  • 10 additional gift articles per month
  • FT Weekend Print delivery
  • Everything in Standard Digital
  • Everything in Premium Digital

Complete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.

  • 10 monthly gift articles to share
  • Everything in Print
  • Make and share highlights
  • FT Workspace
  • Markets data widget
  • Subscription Manager
  • Workflow integrations
  • Occasional readers go free
  • Volume discount

Terms & Conditions apply

Explore our full range of subscriptions.

Why the ft.

See why over a million readers pay to read the Financial Times.

International Edition

  • My View My View
  • Following Following
  • Saved Saved

Spanish police recover stolen Francis Bacon painting worth $5.4 mln

  • Medium Text

Sign up here.

Reporting by Emma Pinedo and Miguel Gutierrez, editing by Inti Landauro, Alexandra Hudson

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

French President Macron visits New Caledonia

A two-storey restaurant building collapsed on the beach in Palma de Mallorca on Thursday, killing at least four people and injuring 16 people in the tourism hot spot in Spain's Balearic Islands, the country's national police said.

Aftermath of a Russia missile attack in Kharkiv

World Chevron

A top Hong Kong government official has urged Britain to let the public "know the truth" about the unexplained death of a man charged this month with aiding the territory's foreign intelligence service.

A Taiwan Air Force Mirage 2000-5 aircraft prepares to land at Hsinchu Air Base in Hsinchu

At least 14 people were killed and three injured in a fire that broke out at a densely populated residential area in Hanoi early on Friday, police said.

Displaced Palestinians, who fled their house due to Israel's military offensive shelter in a tent, in Rafah

IMAGES

  1. Deed of Assignment and Transfer of Rights

    assignment of property rights

  2. Assignment Rights Statement Form

    assignment of property rights

  3. Assignment of intellectual property rights

    assignment of property rights

  4. Assignment of Rights

    assignment of property rights

  5. Free Real Estate Assignment Contract

    assignment of property rights

  6. Deed of Assignment and Transfer of Rights Vehicle

    assignment of property rights

VIDEO

  1. How To Start Your Own Theme Park In India

  2. Assignment 2

  3. Assignment 8

  4. Assignment 7

  5. Assignment 0

  6. Assignment 4

COMMENTS

  1. assignment

    assignment. Assignment is a legal term whereby an individual, the "assignor," transfers rights, property, or other benefits to another known as the " assignee .". This concept is used in both contract and property law. The term can refer to either the act of transfer or the rights /property/benefits being transferred.

  2. Assignment of Rights Agreement: Everything You Need to Know

    The name of the of the party who is taking the rights and responsibilities (the assignee) The other party to the first agreement (known as the obligor) The name of the agreement and its expiration date. Whether the first contract necessitates the obligor's approval before assigning rights. The date of the obligor's consent.

  3. Assignment Of Rights Agreement: Definition & Sample

    An assignment of rights agreement is a written document in which one party, the assignor, assigns to another party all or part of their rights under an existing contract. The most common example of this would be when someone wants to sell their shares of stock in a company. When you buy shares from someone else (the seller), they agree to ...

  4. Assignments: The Basic Law

    Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court, 35 Cal. 2d 109, 113-114 (Cal. 1950). An assignment will generally be permitted under the law unless there is an express prohibition against assignment ...

  5. Assignment (law)

    Assignment (law) Assignment [1] is a legal term used in the context of the laws of contract and of property. In both instances, assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee. [2] An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee.

  6. Property Rights, Public Goods and the Environment

    The assignment and enforcement of property rights is a way of institutionalizing ownership of resources. In capitalist societies it is implicitly assumed that the assignment of private rights is a good thing and further that the costs of enforcement (through a system of laws, police to monitor them and courts to settle disputes) are negligible ...

  7. Assignment of Contract Rights: Everything You Need to Know

    Assignment of rights changes the foundational terms of the agreement. The assignment is illegal in some way. If assignment of contract takes place, but the contract actually prohibits it, the assignment will automatically be voided. When a transfer of contract rights will somehow change the basics of the contract, assignment cannot happen.

  8. Uncertain Property Rights and the Coase Theorem

    3. For the wealth or welfare effect of the assignment of property rights to affect resource allocation, it is not sufficient that the effect be large. Additionally, the property right must be for an asset that is not available in a competitive market. In other words, the asset must have an intrinsic value for at least one of the parties.

  9. Resale Markets and the Assignment of Property Rights

    The major conclusion of our paper is that the irrelevance of the initial structure of property rights arises in resale processes even if there are transaction costs that hinder efficiency. This result complements the Coasian view where the irrelevance of the assignment of property rights is a consequence of efficiency.

  10. Assignment of Property Rights Definition

    Related to Assignment of Property Rights. Real Property Rights means all rights in or to real property (such as leasehold or other rights to use or access the Project Site), leases, agreements, Permits, easements, including licenses, private rights-of-way, and utility and railroad crossing rights required to be obtained or maintained by Owner in connection with construction of the Project on ...

  11. 16. Property Rights and the Constitution

    Share. Congress should. • enact legislation for guiding federal agencies and influencing courts that outlines the constitutional rights of property owners under the Fifth Amendment's Takings ...

  12. The tragedy of the commons: property rights and markets as solutions to

    12 This fundamental role of markets is described by Harold Demsetz, 1967, 'Toward a Theory of Property Rights,'American Economic Review: Papers and Proceedings 57(2): 347-359. 13 This point is emphasised by Gary D. Libecap, 2008, 'Open-Access Losses and Delay in the Assignment of Property Rights,'Arizona Law Review.

  13. Assignments, Disclaimers and Powers of Appointment

    For example, consider an unmarried father who dies intestate — without a will or trust - and is survived by a son and a daughter — his heirs. Prior to settling dad's estate, the son decides to give his one-half share to his sister and signs and notarizes an assignment of inheritance rights. The assignment is then filed with the Court.

  14. The Assignment of Property Rights on the Western Frontier: Lessons for

    I examine the assignment of private property rights during the 19th and early 20th centuries to five natural resources, mineral land, timberland, grazing and farm land, and water on federal government lands in the Far West. The region was richly endowed with natural resources, but assigning property rights to them required adaptation from ...

  15. A Guide to Assignment of Contract in Real Estate

    Written by MasterClass. Last updated: Jul 12, 2021 • 4 min read. Assignment of contract involves one party transferring the rights of a real estate purchase agreement to another party. This real estate investing strategy can involve time and financial pressure, but the assignor can potentially make a quick buck.

  16. Introduction to the Coase Theorem

    The Coase Theorem, developed by economist Ronald Coase, states that when conflicting property rights occur, bargaining between the parties involved will lead to an efficient outcome regardless of which party is ultimately awarded the property rights, as long as the transaction costs associated with bargaining are negligible. Specifically, the Coase Theorem states that "if trade in an ...

  17. Property Rights

    Property Rights. Property rights can be assigned just as any other contractual right. Through an assignment, the assignor transfers all the duties and liabilities as well as the complete interest to the assignee. [i] Following assignment, the assignor cannot retain any sort of reversionary interest. If any interest is retained by a tenant after ...

  18. Property rights in Russia after 2009: from business capture to

    Section 2 (property rights) provides a detailed discussion of the evolution of property rights relations in Russia during the last 30 years, and introduces our conceptualization of three distinct stages in the relation between business and the state. Section 3 (quantitative evidence) uses four different sets of indicative data to document a ...

  19. Harvard Law Review|

    property,7 a type of property regime that may result when initial en-dowments are created as disaggregated rights rather than as coherent bundles of rights in scarce resources.8 More generally, one can under-stand anticommons property as the mirror image of commons property. In a commons, by definition, multiple owners are each endowed with

  20. Assignment and novation

    Like assignment, novation transfers the benefits under a contract but unlike assignment, novation transfers the burden under a contract as well. In a novation the original contract is extinguished and is replaced by a new one in which a third party takes up rights and obligations which duplicate those of one of the original parties to the ...

  21. Grounds and Methods of Acquiring Immovable Property ...

    The article is dedicated to study of possible protection of violated property rights in the event of competition restraint, which is expressed in imposing the terms of general commercial contracts ...

  22. Gorodissky and Partners

    Our Values. Gorodissky & Partners is the biggest IP law firm with offices in Russia, Kazakhstan, Ukraine and UAE. Our IP attorneys and lawyers assist in protection and enforcement of exclusive rights for various intellectual property subject-matters including inventions, utility models, industrial designs, trademarks, geographical indications, appellations of origin, plant varieties and animal ...

  23. Federal Circuit Reversal in Assignment Clause Case Highlights

    In a split opinion issued Tuesday, and based on language in an assignment clause of a contract, the Federal Circuit overturned a district court's summary judgment that Core Optical lacked standing to sue Nokia, Cisco, and ADVA for infringement.. The case, involving a fiber optic patent, centers on the interpretation of the phrase "entirely on my own time" within an assignment clause of the ...

  24. Putin Signs Decree Allowing for Seizure of U.S. Property in Russia

    Mikhail Sinitsyn, TASS / kremlin.ru. President Vladimir Putin on Thursday signed a decree that allows Moscow to take control of U.S. property as compensation for any seizure of frozen Russian ...

  25. To Run the World

    To Run The World: The Kremlin's Cold War Bid for Global Power by Sergey Radchenko Cambridge University Press £30, 768 pages. Edward Luce is the FT's US national editor. Join our online book ...

  26. Norway Bans Entry to Russian Tourists

    Norway on Thursday announced that it would restrict entry to Russian tourists, shutting their last direct access to Europe's border-free Schengen area. "Russian citizens whose purpose is tourism ...

  27. Spanish police recover stolen Francis Bacon painting worth $5.4 mln

    Spanish police said on Thursday they had recovered a painting by the late Irish-born British figurative artist Francis Bacon, worth an estimated 5 million euros ($5.42 million), and one of five ...

  28. Ukraine War Disrupts Eagle Migration Patterns

    Bernard Dupont (CC BY-SA 2.0) Russia's full-scale invasion of Ukraine has led to significant disruptions in the migratory patterns of a vulnerable species of eagles, according to a new study ...