Assignment - sustany/dvg GitHub Wiki

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 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�.

(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.�