Also known as:assign · assigns · assigned · assigning · assignability · assignable · assignee · assigner · assignments · assignor · transfer of rights · contract assignment
Written by attorneys — see sources below.
An act by which the owner of a right manifests an intention to transfer that right to another person without further action by the owner. The manifestation may be made orally or in writing and is effective when the intention to make an immediate transfer is clear.
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How its tested
Common Examples
6
Bankruptcy Court Jurisdiction Challenge
A creditor holds a state-law contract claim against a debtor. The creditor attempts to transfer the claim to a collection agent by manifesting an immediate intention to pass the right. The assignment is effective under ordinary contract rules even though the underlying jurisdictional dispute reaches the Supreme Court.
Creditor Attachment of Trust Interest
A beneficiary holds a trust interest free of any spendthrift clause. A judgment creditor obtains a court order attaching future distributions. The court authorizes the assignee to reach the interest through attachment because the beneficiary's interest is reachable absent a valid restraint.
An obligee tells a third party that it is transferring its right to receive payment under an existing contract. The obligee later attempts to revoke the transfer. The assignment is effective because the obligee manifested an intention to transfer the right immediately without needing further action.
Landlord Retains Benefit After Transfer
A landlord transfers its reversion but does not assign an express promise by the tenant to maintain the premises. The original landlord sues to enforce the maintenance promise. The landlord retains the benefit because it was not assigned and does not run with the transferred interest.
Court Division of Marital Property
One spouse holds a contractual right acquired before marriage. In dissolution proceedings the spouse manifests an intention to transfer that right to the marital estate. The court treats the transfer as an effective assignment and divides the resulting interest under statutory factors.
Spendthrift Provision Blocks Creditor
A trust contains a valid spendthrift clause. A beneficiary attempts to assign its interest to a creditor before any distribution. The creditor cannot reach the interest or future distributions because the clause validly restrains both voluntary and involuntary transfers.
4 common questions
Students Frequently Ask...
What manifestation is required to create a valid assignment of a contract right?
The obligee must manifest an intention to transfer the right immediately to another person. The manifestation may be oral or written and need not be made directly to the assignee.
Supporting sources
When may a creditor reach a beneficiary's trust interest through an assignment?
A creditor or assignee may reach the interest by attachment of distributions when the interest is not subject to a valid spendthrift provision. The court may tailor the relief to the circumstances.
Supporting sources
How does a spendthrift provision affect an attempted assignment by a beneficiary?
A valid spendthrift provision prevents the beneficiary from transferring the interest and bars a creditor or assignee from reaching the interest or distributions before receipt by the beneficiary.
Supporting sources
What happens to an express lease promise when the landlord transfers its interest?
The transferor retains the benefit of an express promissory obligation to the extent it is not assigned and does not run with the transferred interest.
Supporting sources
5 U.S. (1 Cranch) 137 (1803)
…issue a mandamus to such an officer it must be because the law is unconstitutional and incapable of conferring the authority and assigning the duties which its words purport to confer and assign. The Constitution vests the whole judicial power in one supreme court and such inferior courts as Congress shall ordain and…