With regard to contract law, what is an assignment?
What will be an ideal response?
A contract consists of both rights and duties. A contracting party has the duty to perform his or her own promise and the right to receive the other party's promised performance. These rights and duties can usually be transferred to third persons. When rights under a contract are transferred, this is called an assignment.
The person who makes an assignment is called the assignor, and the person who accepts the assignment is called the assignee. After an assignment, the assignee is entitled to whatever performance the assignor had a right to under the original contract. The other original party to the contract (called the promisor or obligor) must render all performance to the assignee. For example, Bill owes Frank $100, payable in six months. Frank, who needs money today, assigns his rights to the payment to Mary for $80. Bill (the promisor or obligor) must now pay Mary (the assignee) the $100 he previously owed a duty to pay to Frank (the assignor). No particular formalities are required to create an assignment. It can be done orally or in writing, so long as the assignor's intent to assign is clear. In addition, consideration is generally not required. Rights can be given away as well as sold.
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