Contracts are an important part of any business deal or real estate transaction. Depending on the transaction involved, a contract can be simple and straightforward, or complicated.
Not surprisingly, all contracts contain a number of legal terms.
One contractual term that you may have heard is the term “assignment.”
But what is an assignment?
In today’s post we will take a brief look at assignments: what they are and how they work.
An assignment is the legal transfer of rights (or obligations) from one person to another.
In Georgia, an assignment is the “absolute, unconditional, and completed transfer of all right, title and interest in the property that is the subject of the assignment.”
The person who is transferring his or her rights/obligations is called the “assignor.” And the person who gets these rights/obligations is called the “assignee.”
Assignments can be used in number of different instances. For example, they can be used in real estate transactions, business contracts, or to even transfer the right to sue another party or enforce a money judgment.
Each state has its own rules on what types of interests may or may not be assigned to another and how to go about it.
For example, in Georgia, caselaw has established that certain contracts are unique and the obligation to perform such a contract cannot be assigned to someone else. Examples of these types of unique contracts include a promise to marry or engagements for personal services, such as in an attorney-client contract.
Generally speaking, it is the legal nature of the assignment and the terms of the contract itself that determines whether or not a right or obligation can be assigned to another.
When the law does allow a right/obligation to be assigned, it can generally be done by one party to the contract without the need to consult the other party. Again, there are instances when this is not the case. In other words, there are situations when a right may be assigned, but only with the consent of the other party to the contract. These nuances and requirements of the law specific to your situation and your state is the main reason why you should always consult experienced counsel.
State law also determines whether or not an assignment must be in writing. In Georgia, for example, all assignments of liens must be in writing.
Assignments are significant contractual tools that can be used in a number of situations, but they can lead to litigation if handled incorrectly. Assignments require a complete understanding of the applicable law as well as careful analysis of the facts surrounding the assignment. So, before you enter into an assignment in Georgia, always consult with experienced counsel.
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At the Law Offices of Mark Weinstein, P.C., our clients benefit from our experience. We have extensive experience in real estate law. We have offices in Cumming, and we serve clients in Atlanta, Gainesville, Gwinnett County, Bartow County, Hall County, Henry County, Cherokee County, Clayton County, Cobb County, and other counties throughout Georgia. To find out what we can do for you, call us today at: 770-888-7707. Or you can e-mail us with inquiries at: email@example.com