In contracts, you might come across the terms ‘assignor’ and ‘assignee’. These terms are used to describe two parties involved in the transfer of rights or property or a business contract. Let’s look at the roles and responsibilities of the assignor and assignee.

Who is the assignor?

The assignor is the person or party who transfers their interests to someone else. They are giving up something, such as ownership or rights, to another person. The assignor must have the legal authority to assign the rights or property.

What does the assignee do?

The assignee is the person or party receiving the rights or interests from the assignor. This means the assignee takes over the responsibilities, rights, or benefits that were originally held by the assignor. The assignee is now responsible for whatever was transferred in the agreement.

What is a deed of assignment?

A deed of assignment is a legal document that formalises the transfer of rights or property. The deed must clearly state what is being transferred, which could be ownership of property, rights in a contract, intellectual property, or debts. For the deed of assignment to be legally binding, it must be signed by both the assignor and assignee and may require witnesses or notarisation depending on local law. Without a properly executed deed of assignment, the transfer may not be recognised under the law, leaving both parties vulnerable to legal complications.

How are the assignor and assignee related in a contract?

In many contracts, the assignor may decide or need to transfer their rights and obligations to another party. The assignee, once the transfer is completed, steps into the assignor’s shoes and assumes their position in the contract. Both parties must agree to the assignment, and the terms of the original contract often specify how and when this can happen.

Even after the assignment, the assignor may remain liable if something goes wrong, especially if they gave a guarantee. It is important to understand the legal aspects and obligations to make the assignor and assignee process go smoothly.