right of assignment
Definition
The right of assignment is your ability to transfer your contractual rights or obligations to another person or business. When you assign a contract, the new party steps into your shoes and takes over your position in that agreement. Many contracts limit or completely prohibit this right, so you need to check before assuming you can hand off your responsibilities.
Example
If you sign a lease for office space and later want to sell your business, the right of assignment would allow you to transfer that lease to the new owner so they can keep using the space under the same terms.
Watch Out
Always read your contracts carefully for language like 'non-assignable' or 'assignment requires written consent,' because transferring a contract without permission can land you in breach and expose you to a lawsuit.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.