A. Assignment

1. An assignment is a transfer of rights to a third party.

2. The parties are the Obligor or promisor, the Obligee or the one to whom the promise is made, the Assignor, also known as the Obligee, or the party who makes the assignment, and the Assignee or the third party who receives the transfer of rights from Assignor.

3. An assignment can be oral or written so long as it shows an intention to transfer or assign a right.

4. Once an assignment is made, the assignee should give immediate notice of the assignment to the obligor. Once the obligor receives notice, he or she can only pay the assignee. If the obligor pays the obligee when there is an assignment, the obligor will still owe the assignee. The obligation can only be discharged by paying the assignee.

5. Money is an assignable right or the right to raise money or receive cash. However, there are three nonassignable rights.

a. Increasing the burden of performance

b. personal services

c. credit transactions

6. The assignor remains primarily liable for the conduct and actions of the assignee and for any obligation of the contract.

7. The assignee has no greater right under the contract than the assignor.