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Assignment
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles
J Woelfel
(We recommend this as work of authority and you can order
it here)
An
assignment occurs when one party to a contract (a right, claim, or interest)
transfers (assigns) his or her rights under the agreement to a third person.
The person who transfers the right is called the assignor; the
person to whom the right is transferred is called the assignee.
The other party to the contract against whom the right can be exercised
is the obligor.
Generally,
only contractual rights (not contractual duties) can be assigned.
Contractual duties can be delegated if they do not require personal
services or the personal attention of the obligor.
To be enforceable, an assignment must constitute a contract, i.e.,
a statement indicating an intent to make the assignee the owner of the
right, claim, or interest.
The assignment can usually be made orally or in writing.
Special
rules have been formulated by stock exchanges to govern the assignment
of stock.
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