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. Third, the obligor can sue the assignee directly if the assignee does not pay them. Second, rights cannot be assigned when they materially change the obligor’s duty and rights. That is, if A has not yet contracted with B to teach B guitar, A cannot assign their rights to C. There are a few notable rules regarding assignments under contract law.įirst, if an individual has not yet secured the contract to perform duties to another, they cannot assign their future right to an assignee. 
In this example, A is both the “assignor” and the “delegee” who delegates 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.Īssigning of Rights/Duties Under Contract Law. Here, A has both: (1) assigned A’s rights under the contract to the $50 and (2) delegated A’s duty to teach guitar, to C. For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C. Under contract law, when one party assigns a contract, the assignment represents both: (1) an assignment of rights and (2) a delegation of duties. This concept is used in both contract and property law. 
Assign is the act of transferring rights, property, or other benefits to another party (the assignee) from the party who holds such benefits under contract (the assignor).
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