Assignor vs. AssigneeDifferences You Need to Know Between the Two!
An assignor and assignee are both parties in a contract assignment.
These parties each have a different role in the contract assignment.
The assignor is the person who owns the rights to property that they are giving to someone else.
The third party to which the assignor is transferring their property is the assignee.
Assignment is a typical part of contract law and appears in a variety of contractual agreements.
It is the practice of transferring one party’s obligations and rights to another party.
What is an Assignor?
A business or person who grants the obligations or rights it possesses to a property to another person is an assignor.
The assignor may place limits on the assignee and enforce these conditions to restrict the assignee’s use of the property.
These limits need to be included in the contract.
There are also some contracts in which the assignor still maintains some contractual obligations.
The assignor may be required to guarantee or give assurance concerning the performance of the contract involved.
The guarantee would be given to ensure that should the assignee not fulfill the terms of the contract, the assignor would be under the obligation to do so.
What is an Assignee?
An assignee is an entity or person who is being granted the obligations and rights of a contract from an assignor.
An assignee is not an original party to the contract.
Instead, the assignee is given their obligations and rights by the assignor.
An assignee could be granted the rights to anything by the assignor as long as the assignor possesses the rights to the property.
This could be intellectual property, real estate,or property, among others.
The benefits or property may be intangible or tangible.
The assignor determines the benefits or rights to be granted.
Assignor or Assignee
| Assignor | Assignee | |
| Role | Transfers their obligations and rights in the contract | Is granted the obligations and rights when the contract is assigned |
| Party | An original party to the contract | Added to the contract as a third party |
| Length of rights | Holds their rights for the term of the contract | Required to relinquish their rights when the assignment period ends |
| Authority | Has the authority necessary to impose limits on the assignee | Does not have authority over the assignment of the contract |
Key Takeaways
- An assignor possesses the right to place limits on the scope of operation of an assignee as well as enforce more conditions for the assignment of the contract.
- An assignee and assignor are both parties to the one contract. The assignor is the person transferring their property rights to another person. The assignee is the person to whom the property is being transferred.
- The assignee must return the property rights to the assignor once the period of assignment is ended.
FundsNet requires Contributors, Writers and Authors to use Primary Sources to source and cite their work. These Sources include White Papers, Government Information & Data, Original Reporting and Interviews from Industry Experts. Reputable Publishers are also sourced and cited where appropriate. Learn more about the standards we follow in producing Accurate, Unbiased and Researched Content in our editorial policy.
California State University "CHAPTER 17 - THIRD PARTY CONTRACTS" Page 1 . March 30, 2022