Assignment

An assignment is the transfer of rights or interests in a contract from one party to another, without releasing the original party from liability.

• Transfers rights, not obligations
• Original party remains liable
• Does not require consent of the other party unless restricted
• Common in leases and contracts

• Tenant assigns lease to a new tenant
• Original tenant remains responsible for rent and performance
• Landlord may restrict assignment by lease terms

• Assignment
  • Original party remains liable
  • Only rights are transferred

• Novation
  • Original party is released
  • Entire obligation is replaced

• Contracts may prohibit assignment
• Leases often require landlord approval
• Some contracts are non-assignable by law

• Assignment does not extinguish the original contract
• Liability remains unless a novation occurs