Contracts
Assignment
Definition
An assignment is the transfer of contractual rights from one party (the assignor) to another (the assignee). Once a valid assignment is made, the assignee steps into the shoes of the assignor and may enforce the right directly against the obligor. Most contract rights are freely assignable unless the assignment would materially change the obligor's duty or risk, the contract prohibits assignment, or public policy bars it.
Example
A creditor assigns its right to collect payment from a debtor to a collection agency. The agency may now sue the debtor directly for the debt.