what is meaning of law of assignment

• Personal Profile
• See all online law products
• Guided Tour
• Subscriber Services

• Financial Law [FBL]
• International Commercial Arbitration [ICMA]
• Private International Law [PRIL]
• International Commercial Law [ICML]

Recently viewed (0)

• Save Search

• Find at OUP.com

The Law of Assignment (3rd Edition)

Marcus smith, nico leslie.

This book is the leading text on the law relating to intangible property or choses in action. Its clear and approachable structure covers all forms of intangible property (debts, rights under contract, securities, intellectual property, leases, rights/causes of action, and equitable rights), considering the nature of intangible property, how it comes into being, and how it is transferred or assigned. The first part of the book analyses the general principles regarding intangibles and their transfer, and the second examines the practical considerations relating to particular types of intangibles, securities, insurance contracts, leases, and intellectual property under the law. This new edition includes new chapters on powers of attorney and factoring, areas particularly important to legal practice. Other significant developments include the expansion of the chapter on leases to include leasing of chattels, and more material on securities, especially regarding the operation of settlement systems.

Bibliographic Information

Affiliations are at time of print publication..

Marcus Smith, author

Nico Leslie, author

• Share This Facebook LinkedIn Twitter
• Foreword to The Third Edition
• Foreword to the Second Edition
• Foreword to the First Edition
• Preface to The Third Edition
• Preface to the First Edition
• Summary Contents
• Detailed Contents
• Table of Cases
• Statutory Instruments
• Netherlands
• United States
• Conventions
• Regulations
• International Conventions
• List of References
• List of Authority Abbreviations
• Preliminary Material
• Part III.01
• [66.249.64.20|185.66.14.133]
• 185.66.14.133

The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

ASSIGNMENT Definition & Legal Meaning

Definition & citations:.

In contracts. 1. The act by which one person transfers to another, or causes to vest in that other, the whole of the right, interest, or property which he has in any realty or personalty, in possession or in action, or any share, interest, or subsidiary estate therein. Seventh Nat. Bank v. Iron Co. (C. C.) 35 Fed. 440; Haug v. Riley, 101 Ga. 372, 29 S. E. 44, 40 L It A. 244. More particularly, a written transfer of property, as distinguished from a transfer by mere delivery. 2. In a narrower sense, the transfer or making over of the estate, right, or title which one has in lands and tenements; and, in an especially technical sense, the transfer of the unexpired residue of a term or estate for life or years. Assignment does not include testamentary transfers. The idea of an assignment is essentially that of a transfer by one existing party to another existing party of some species of property or valuable interest, except in the case of an executor. Ilight v. Sackett, 34 N. Y. 447. 3. A transfer or making over by a debtor of all his property and effects to one or more assignees in trust for the benefit of his creditors. 2 Story, Eq. Jur.

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

Browse Legal Articles

Business Formation

Business Law

Child Custody & Support

Criminal Law

Employment & Labor Law

Estate Planning

Immigration

Intellectual Property

Landlord-Tenant

Motor Vehicle Accidents

Personal Injury

Real Estate & Property Law

Traffic Violations

Browse by Area of Law

Powered by Black’s Law Dictionary, Free 2nd ed., and The Law Dictionary .

About The Law Dictionary

Terms and Conditions

Privacy Policy

Legal Assignment: Everything You Need to Know

A legal assignment occurs when a party assigns their contractual rights to a third party. 3 min read updated on February 01, 2023

A legal assignment occurs when a party assigns their contractual rights to a third party. The benefit that the issuing party would have received from the contract is now assigned to the third party. The party appointing their rights is referred to as the assignor, while the party obtaining the rights is the assignee.

Assignment of Contract

A legal assignment occurs when:

• The rights in personal or real property are transferred from one party to another
• The transfer also gives the new owner the rights to the property that the prior owner held prior to the transfer occurring

In the Purman Estate case, the court stated that a legal assignment is a transfer of property, or of some right or interest, from one person to another. It also stated that it must be the proper transfer of one whole interest in that property.

An assignment of rights occurs when an assignor gives up or transfers their rights of a future benefit to another party. In other words, an assignment is the act of one party transferring, vesting, or causing to vest their interest in a property to another party. A valid legal assignment only occurs when all underlying elements of a lawfully binding contract are included in it, including intent. A trial court can determine if an assignment has occurred. To prevent disputes or miscommunications, it's important that the subject matter is clearly identified in the assignment.

A contract assignment occurs when a party assigns their contractual rights to a third party. The benefit the issuing party would have received from the contract is now assigned to the third party. The party appointing their rights is referred to as the assignor, while the party obtaining the rights is the assignee. Essentially, the assignor prefers that the assignee reverses roles and assumes the contractual rights and obligations as stated in the contract. Before this can occur, all parties to the original contract must be notified.

How Assignments Work

The specific language used in the contract will determine how the assignment plays out. For example , one contract may prohibit assignment, while another contract may require that all parties involved agree to it before proceeding. Remember, an assignment of contract does not necessarily alleviate an assignor from all liability. Many contracts include an assurance clause guaranteeing performance. In other words, the initial parties to the contract guarantee that the assignee will achieve the desired goal.

When Assignments Will Not Be Enforced

The following situations indicate when an assignment of a contract is not enforced:

• The contract specifically prohibits assignment
• The assignment drastically changes the expected outcome
• The assignment is against public policy or illegal

Delegation vs. Assignment

Occasionally, one party in a contract will desire to pass on or delegate their responsibility to a third party without creating an assignment contract. Some duties are so specific in nature that they cannot be delegated. Adding a clause in the contract to prevent a party from delegating their responsibilities and duties is highly recommended.

Three Steps to Follow if You Want to Assign a Contract

There are three main steps to take if you're looking to assign a contract:

• Make sure the current contract does not contain an anti-assignment clause
• Officially execute the assignment by transferring the parties' obligations and rights
• Notify the obligor of the changes made

Once the obligor is notified, the assignor will effectively be relieved of liability.

Anti-Assignment Clauses

If you'd prefer not to allow the party you're doing business with to assign a contract, you may be able to prevent this from occurring by clearly stating anti-assignment clauses in the original contract. The three most common anti-assignment clauses are:

• Consent required for assignment
• Consent not needed for new owners or affiliates
• Consent not unreasonably withheld

Based on these three clauses, no party in the contract is allowed to delegate or assign any obligations or rights without prior written consent from the other parties. Any delegation or assignment in violation of this passage shall be deemed void. It is not possible to write an anti-assignment clause that goes against an assignment that is issued or ordered by a court.

If you need help with a legal assignment, you can  post your job  on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb. 

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• Assignment Law
• Assignment Contract Law
• Assignment of Rights and Obligations Under a Contract
• Assignment of Rights Example
• Consent to Assignment
• Assignment Legal Definition
• What Is the Definition of Assigns
• Delegation vs Assignment
• Assignment Of Contracts
• Assignment of Contract Rights

Contact us whenever you need it!

+1 855 997 0206

Contact Hours: Sun-Sat 8am - 10pm ET

• LawDistrict ❯
• Legal Dictionary

Assignment is a legal definition that refers to the transfer of rights, property, or other benefits between two parties. The party allocating the rights is known as the “assignor”, while the one receiving them is called the “assignee”. The other original party to the contract is known as the “ obligor ”.

A burden, duty, or detriment cannot be transferred as an assignment without the agreement of the assignee . Furthermore, the assignment can be carried out as a gift, or it may be paid for with a contractual consideration .

Keep reading to learn how this important legal term is used both in contract and property law and to see relevant examples.

• Assignment Examples

A common example of assignment within property law can be seen in rental agreements between landlords and tenants. For example, a tenant may be renting from a landlord but wants another party to take over the property . In this scenario, the tenant may be able to choose between assigning the lease to a new tenant or subleasing it.

If assigning it, the new tenant will be given the entire balance of the term, with no reversion to anyone else being possible. In other words, the new tenant would have a legal relationship with the landlord. On the other hand, if subleasing the property, the new tenant would be given a limited term and no legal responsibility towards the property owner, only towards the original tenant.

Another example of assignment can be seen within contract law . Let’s say that a school hires a piano teacher for a monthly employment contract with a salary of $2000 per month. As long as there is consent from all parties, the teacher could assign their contract to another qualified piano instructor.

This would be an assignment both of the piano teacher’s rights to receive $2000 per month, and a delegation of their duty to teach piano lessons. This illustrates the fact that under contract law, assignment always includes a transfer of both rights and duties between the parties. If a breach of contract is made by either party, for example for defective performance, then the new teacher or the school can sue each other accordingly.

• Legal Requirements for Assignment

For an assignment to be legally valid, it must meet certain requirements . If these are not met, a trial court can determine that the transfer of rights did not occur. The legal requirements for assignment are as follows:

• All parties must consent and be legally capable to carry out the assignment.
• The objects, rights, or benefits being transferred must be legal.
• The assignment is not against public policy or illegal.
• Some type of consideration is included if necessary.
• The contract in question must already be in place and doesn’t prohibit assignment.
• If a duty is being transferred, and it requires a rare genius or skill, then it cannot be delegated.
• The assignment doesn’t significantly change the expected outcome of a contract.
• Assignment Steps

To successfully assign a contract, certain steps must be followed to ensure the process is legally valid. The necessary assignment steps are listed below:

• Ensuring there is no anti-assignment clause in the contract.
• Executing the assignment by transferring the obligations and rights to a third party.
• Notifying the obligor of the transfer, which in turn relieves the assignor of any liability.
• Avoiding Assignment

In certain situations, one of the two parties may not want to allow their counterpart to assign the contract. This can be prevented by setting anti-assignment clauses in the original contract. An example of this is making it necessary for prior written consent to be attained from the other parties before the assignment is approved. Nevertheless, an anti-assignment clause cannot be included in an assignment that was issued or ordered by a court.

• Assignment vs. Novation

Novation occurs when a party would like to transfer both the benefits and burden of a contract to another party. This is similar to assignment in the sense that the benefits are transferred, but in this case, the burden is also passed on. When novation is finalized, the original contract is deleted and a new one is created, in which a third party becomes responsible for all the obligations and rights of the original contract.

• Assignment vs. Delegation

Although delegation and assignment are similar in purpose, they are two different concepts. Delegation refers to transferring the obligation to a third party without an assignment contract . While in assignment an entire contract and its rights and benefits can be passed on, in delegation only a particular contractual task or activity is transferred.

Let’s look at an example . Lisa is a homeowner that wants to hire Michael with an independent contractor agreement to remodel her garage. He plans to do all the work himself, but he’s not a painter, so he wants to delegate the painting work to his friend Valentina.

In this example, the contract is between Lisa, the obligor, and Michael, the delegator. Valentina would then be known as a delegatee, she doesn’t assume responsibility for the contract nor does she receive the contractual benefits, which in this case would be monetary compensation. However, Michael may have a separate agreement with Valentina to pay her in return for her work.

It’s also important to note that some duties are so specific in nature that it’s not possible to delegate them. In addition, if a party wants to avoid delegation , it’s recommended to add a clause to prevent the other party from delegating their duties.

Create a Customizable Legal Form Now

Get 7 Days Total Access to Our Entire Catalog!

Deed of Assignment or Deed of Novation: Key Differences and Legal Implications of Novation and Assignment Contracts

Novation and assignment stand out as pivotal processes for the transfer of contractual rights and obligations. These legal concepts allow a party to the contract to adapt to changing circumstances, ensuring that business arrangements remain relevant and effective. This article explores the nuances of novation and assignment, shedding light on their distinct legal implications, procedures, and practical applications. Whether you’re a business owner navigating the transfer of service contracts, or an individual looking to understand your rights and responsibilities in a contractual relationship, or a key stakeholder in a construction contract, this guide will equip you with the essential knowledge to navigate these complex legal processes.

Table of Contents

• What is a Deed of Novation? 
• What is a Deed of Assignment? 

Key Differences Between Novation and Assignment Deeds

Need a deed of novation or assignment key factors to consider, selecting the right assignment clause for your contract – helping you make the right choice, what is a deed of novation.

Novation is a legal process that allows a new party to a contract to take the place of an original party in a contract, thereby transferring both the responsibilities and benefits under the contract to a third party. In common law, transferring contractual obligations through novation requires the agreement of all original parties involved in the contract, as well as the new party. This is because novation effectively terminates the original contract and establishes a new one.

A novation clause typically specifies that a contract cannot be novated without the written consent of the current parties. The inclusion of such a clause aims to preclude the possibility of novation based on verbal consent or inferred from the actions of a continuing party. Nevertheless, courts will assess the actual events that transpired, and a novation clause may not always be enforceable. It’s possible for a novation clause to allow for future novation by one party acting alone to a party of their choosing. Courts will enforce a novation carried out in this manner if it is sanctioned by the correct interpretation of the original contract.

Novation is frequently encountered in business and contract law, offering a means for parties to transfer their contractual rights and duties to another, which can be useful if the original party cannot meet their obligations or wishes to transfer their contract rights. For novation to occur, there must be unanimous consent for the substitution of the new party for the original one, necessitating a three-way agreement among the original party, the new party, and the remaining contract party. Moreover, the novation agreement must be documented in writing and signed by all involved parties. Understanding novation is essential in the realms of contracts and business dealings, as it provides a way for parties to delegate their contractual rights and responsibilities while freeing themselves from the original agreement.

What is a Deed of Assignment?

A deed of assignment is a legal document that facilitates the transfer of a specific right or benefit from one party (the assignor) to another (the assignee). This process allows the assignee to step into the assignor’s position, taking over both the rights and obligations under the original contract. In construction, this might occur when a main contractor assigns rights under a subcontract to the employer, allowing the employer to enforce specific subcontractor duties directly if the contractor fails.

Key aspects of an assignment include:

• Continuation of the Original Contract: The initial agreement remains valid and enforceable, despite the transfer of rights or benefits.
• Assumption of Rights and Obligations: The assignee assumes the role of the assignor, adopting all associated rights and responsibilities as outlined in the original contract.
• Requirement for Written Form: The assignment must be documented in writing, signed by the assignor, and officially communicated to the obligor (the party obligated under the contract).
• Subject to Terms and Law: The ability to assign rights or benefits is governed by the specific terms of the contract and relevant legal statutes.

At common law, parties generally have the right to assign their contractual rights without needing consent from the other party involved in the contract. However, this does not apply if the rights are inherently personal or if the contract includes an assignment clause that restricts or modifies this general right. Many contracts contain a provision requiring the consent of the other party for an assignment to occur, ensuring that rights are not transferred without the other party’s knowledge.

Once an assignment of rights is made, the assignee gains the right to benefit from the contract and can initiate legal proceedings to enforce these rights. This enforcement can be done either independently or alongside the assignor, depending on whether the assignment is legal or equitable. It’s important to note that while rights under the contract can be assigned, the contractual obligations or burdens cannot be transferred in this manner. Therefore, the assignor remains liable for any obligations under the contract that are not yet fulfilled at the time of the assignment.

Choosing Between Assignment and Novation in a Construction Contract

Choosing between a deed of novation and an assignment agreement depends on the specific circumstances and objectives of the parties involved in a contract. Both options serve to transfer rights and obligations but in fundamentally different ways, each with its own legal implications, risks, and benefits. Understanding these differences and considering various factors can help in making an informed decision that aligns with your goals.

The choice between assignment and novation in a construction project scenario, where, for instance, an employer wishes to engage a subcontractor directly due to loss of confidence in the main contractor, hinges on several factors. These are:

• Nature of the Contract:  The type of contract you’re dealing with (e.g., service, sales) can influence which option is more suitable. For instance, novation might be preferred for service contracts where obligations are personal and specific to the original parties.
• Parties Involved: Consent is a key factor. Novation requires the agreement of all original and new parties, making it a viable option only when such consent is attainable. Assignment might be more feasible if obtaining consent from all parties poses a challenge.
• Complexity of the Transaction: For transactions involving multiple parties and obligations, novation could be more appropriate as it ensures a clean transfer of all rights and obligations. Assignment might leave the original party with ongoing responsibilities.
• Time and Cost: Consider the practical aspects, such as the time and financial cost associated with each option. Novation typically involves more complex legal processes and might be more time-consuming and costly than an assignment.

If the intention is merely to transfer the rights of the subcontractor’s work to the employer without altering the subcontractor’s obligations under a contract, an assignment might suffice. However, if the goal is to completely transfer the main contractor’s contractual role and obligations to the employer or another entity, novation would be necessary, ensuring that all parties consent to this new arrangement and the original contractor is released from their obligations.

The legal interpretations and court decisions highlight the importance of the document’s substance over its label. Even if a document is titled a “Deed of Assignment,” it could function as a novation if it transfers obligations and responsibilities and involves the consent of all parties. The key is to clearly understand and define the objective behind changing the contractual relationships and to use a deed — assignment or novation — that best achieves the desired legal and practical outcomes, ensuring the continuity and successful completion of the construction project.

Understanding the distinction between assignment deeds and novation deeds is crucial for anyone involved in contractual agreements. Novation offers a clean slate by transferring both rights and obligations to a new party, requiring the consent of all involved. Assignment, conversely, allows for the transfer of contractual benefits without altering the original contract’s obligations. Each method serves different strategic purposes, from simplifying transitions to preserving original contractual duties. The choice between novation and assignment hinges on specific legal, financial, and practical considerations unique to each situation. At PBL Law Group, we specialise in providing comprehensive legal advice and support in contract law. Our team is dedicated to helping clients understand their options and make informed decisions that align with their legal and business objectives. Let’s discuss!

Authored By Raea Khan

Director Lawyer, PBL Law Group

Find what you need

Share this article, book a 15-min consultation​, rated 5-star by our clients, latest insights & practical guides.

How to Deal with a Disputed Progress Claim: Procedure Under the NSW Security of Payment Act

Navigating the complexities of construction payments can be daunting, especially

How to Describe Construction Works in Payment Claims and Schedules: Ensuring Security of Payment in Construction Contracts

In the construction industry, the adherence to the Security of

How to Remove Strata Committee Members: Guide for NSW Strata Body Corporate

In New South Wales, the dynamics of strata management are

Speak to us Now or Request a Consultation.

How can our expert lawyers help.

Property and strata disputes, building defects claims, setting up new Owners Corporations and more…

Construction & Building Law

Construction and building disputes, building defects, delays and claims, debt recovery and more…

International Estate Planning

Cross-border estate planning, international wills and trusts, tax-efficient wealth transfer strategies and more…

Commercial & Business Law

Starting and scaling your business, banking and business financing, bankruptcy and insolvency and more…

Planning & Environment Law

Environment and planning regulation, land and environment court disputes, sub-divisions and more…

Wills & Estates

Creating, updating and contesting wills, estate planning and administration, probate applications and more…

Get In Touch

Helpful links, site information, how we can help.

Copyright © 2024 PBL Law Group. All Rights Reserved

Thank You For Your Request.

We’ve received your consultation request and will contact you within the next 24 hours (excluding weekends).

What is a notice of assignment?

An assignment takes place when one party is holding a right to property, claims, bills, lease, etc., of another party and wishes to pass it along (or sell it) to a third party. As complicated as that sounds, it really isn’t. Strangely enough, many assignments can be made under the law without immediately informing, or obtaining the permission, of the personal obligated to perform under the contract. An example of this is when your mortgage is sold to another mortgage company. The original mortgage company may not inform you for several weeks, and they certainly aren’t going to ask your permission to make the sale.

If a person obligated to perform has received notice of the assignment and still insists on paying the initial assignor, the person will still be obligated to pay the new assignee according to the agreement. If the obligated party has not yet been informed of the assignment and pays the original note holder (assignor), the assignor is obligated to turn those funds over to the new assignee. But, what are the remedies if this doesn’t take place? Actually, the new assignee may find themselves in a difficult position if the assignor simply takes off with their funds or payment. They are limited to taking action against the person they bought the note from (assignor) and cannot hold the obligator liable. Therefore, it is important to remember that if any note or obligation is assigned to another party, each party should be well aware of their responsibilities in the transaction and uphold them according to the laws of their state. Assignment forms should be well thought out and written in a manner which prevents the failure of one party against another.

Related posts:

• Does your Agreement Require an Assignment Legal Form?
• Why Every Landlord and Tenant Needs a Lease Agreement
• Why you need a Power of Attorney and How to Assign One

Related Posts

• Seven Slip-and-Fall Accidents FAQs That You Should Know
• What is a mutual non-disclosure agreement?
• Can I use a form to change my name?
• When do I need a mechanic’s lien?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

CAPTCHA Code *

• TheFreeDictionary
• Word / Article
• Starts with
• Free toolbar & extensions
• Word of the Day
• Free content

A transfer of rights in real property or Personal Property to another that gives the recipient—the transferee—the rights that the owner or holder of the property—the transferor—had prior to the transfer.

An assignment of wages is the transfer of the right to collect wages from the wage earner to his or her creditor. Statutes regulate the extent to which an assignment may be made.

n. the act of transferring an interest in property or a some right (such as contract benefits) to another. It is used commonly by lawyers, accountants, business people, title companies and others dealing with property. (See: assign )

ASSIGNMENT, contracts. In common parlance this word signifies the transfer of all kinds of property, real, personal, and mixed, and whether the same be in possession or in action; as, a general assignment. In a more technical sense it Is usually applied to the transfer of a term for years; but it is more properly used to signify a transfer of some particular estate or interest in lands.      2. The proper technical words of an assignment are, assign, transfer, and set over; but the words grant, bargain, and sell, or any other words which will show the intent of the parties to make a complete transfer, will amount to an assignment.      3. A chose in action cannot be assigned at law, though it may be done in equity; but the assignee takes it subject to all the equity to which it was liable in the hands of the original party. 2 John. Ch. Rep. 443, and the cases there cited. 2 Wash. Rep. 233.      4. The deed by which an assignment is made,, is also called an assignment. Vide, generally, Com. Dig. h.t.; Bac. Ab. h.t. Vin. Ab. h.t.; Nelson's Ab. h.t.; Civ. Code of Louis. art. 2612. In relation to general assignments, see Angell on Assignments, passim; 1 Hate & Wall. Sel. Dec. 78- 85.      5. By an assignment of a right all the accessories which belong to it, will pass with it as, if the assignor of a bond had collateral security, or a lien on property, the collateral security and the lien will pass with the assignment of the bond. 2 Penn. 361; 3 Bibb, 291; 4 B. Munroe, 529; 2 Drev. n. 218; 1 P. St. R. 454. 6. The assignment of a thing also carries with it all that belongs to it by right of accession; if, therefore, the thing produce interest or rent, the interest or the arrearages of the rent since the assignment, will belong to the assignee. 7 John. Cas. 90 6 Pick. 360.

• abstract of title
• Act of bankruptcy
• Admeasurement of dower
• assignation
• Assignment for Benefit of Creditors
• Assignment of dower
• Assignment of errors
• Bickel, Alexander Mordecai
• Bolin, Jane Matilda
• Bracton, Henry de
• assault by penetration
• assault penalty
• assault with a deadly weapon, sexual assault with a weapon
• Assaulted by bus driver at ATM, any recourse?
• Assaulting a police officer, counterclaims.
• Assertory covenant
• Assessed Valuation
• Assessment of damages
• Assets Recovery Agency
• Asseveration
• assignation of writs
• Assigned Account
• Assigned Risk
• Assigned Risk Plan
• Assises of jerusalem
• Assistance, Writ of
• Assize of mort d' ancestor
• Assize, or Assise
• Associate Justice
• associated company
• association
• Association of Chief Police Officers
• Association of Chief Police Officers in Scotland
• Association of Police Authorities
• Association of Trial Lawyers of America
• assumption of risk
• assigned to you
• assigning to
• Assignment (computer science)
• Assignment (education)
• Assignment (law)
• Assignment Action Number
• Assignment and Analysis of Broadband Spectra
• Assignment and Justification Questionnaire
• Assignment and Lease
• Assignment and Licensing System
• Assignment and Transmittal Document
• Assignment Area
• Assignment Availability Code
• Assignment by Choice
• Assignment Capsule
• Assignment Capsules
• Assignment Clause, Life Insurance
• Assignment Completed
• Assignment Consideration
• Assignment Control Authority
• Assignment Control Number
• Assignment Coordination Group
• Assignment Data Card
• Assignment Date
• Assignment Eligibility & Availability
• Assignment for benefit of creditors
• Facebook Share

Legal Dictionary

The Law Dictionary for Everyone

A person or entity that signs over or transfers their rights to any property or asset to another person or entity. A concept commonly used in contract law , an individual or entity has the right of assignment, which entails one party (the “assigner”) transferring the rights or benefits of a contract to another party (the “assignee”). To explore this concept, consider the following assignor definition.

Definition of Assign

• One who transfers assets or property to another

13th century  Middle English assigner

Assignment of Contract

U.S. law allows most contracts to be assigned, and most duties under a contract may be delegated, unless there is some special character of the duty. In a situation in which a party to a contract does not want the contract to be assignable, specific language must be put into the contract to that effect. An assignment of contract transfers only the rights or benefits of the contract, the obligations remaining with the original party, the “assignor.” Additionally, no assignment of contract can affect the other, non-assigning party to the contract or reduce his benefits from the contract.

Example of Assignment of Contract

Sally enters into a contract with Tom, the owner of Stay-Fresh Diaper Service, to have clean cloth diapers delivered to her house twice a week. Tom assigns the contract (and thus the weekly income) to another diaper service, notifying Sally of the change. Sally continues to receive regular diaper deliveries, and her contract is now with the new service.

Assignment of a contract does not necessarily relieve the assignor of his duties or liability under the contract. For example, if the new diaper service in the example above failed to deliver clean diapers as scheduled, or otherwise fails to uphold the provisions of the contract, Tom may be held liable to fulfill the terms of the agreement.

Consent to Assignment

In the case of a contract permitted to be assigned by law, the assignor is not required to consult or seek the permission of the other party to the contract, so long as the assignment has no material effect on that party. A contract may include a clause prohibiting assignment such as:

This agreement may not be assigned to any other person or entity without the express prior written consent of the other party or its successor in interest.

No party to this agreement may assign any responsibility , right, or interest arising out of this agreement, in whole or in part, without the express prior written consent of the other party or its successor in interest.

These provisions may also include the phrase “consent to assignment of this agreement may not be unreasonably or unduly withheld.” Any party seeking consent to assign their rights under a contract should document the agreement in writing, with all parties to the original contract signing.

Assignment Agreement

While it is necessary to put an assignment agreement in writing, no specific language is required to make it legally binding. There should, however, be certain elements, including a clear statement identifying the contractual rights and benefits being transferred to the assignee, a specific statement of the benefit of the assignment to the assignor, and the effective date. An assignment must occur in the present, as a promise to assign contractual benefits at a later date generally has no legal effect. An exception may be made when a prior economic relationship between the assignor and assignee exists, and the promise of such assignment induced the assignee to enter into another agreement.

For example, Mary would like to borrow $1,000 from Sam. She expects to make an agreement, in 2 months, to sell her antique piano for $1,500 to her neighbor. Mary promises to assign the entire amount from the sale of the piano to Sam if he loans her the money now. Sam is enticed into taking the assignment of a future contract by the prospect of profiting 50 percent on the deal.

In certain situations a unique relationship between the parties to a contract exists making it impossible to assign the contract without changing the responsibilities under, or benefits from, the terms of the contract. For example, Sam and Emma hired a band to play at their engagement party. The band could not take the couple’s money, then assign the gig to another band because Sam and Emma hired that specific band to entertain their guests. This is more accurately called “delegation,” as the band might seek to delegate their responsibilities under the contract.

The counterpart to assignment, delegation involves assignment of a party’s duties, responsibilities, or liabilities under a contract, rather than rights. A clause in the contract barring assignment may also contain language barring delegation. For example, “Neither party may assign or delegate its rights or obligations under this agreement.” To allow assignment or delegation with the approval of the other party, adding the phrase “without the express prior written consent of the other party” enables such a transaction.

Related Legal Terms and Issues

• Contract – an agreement between two or more parties in which a promise is made to do or provide something in return for a valuable benefit.
• Consent – to approve, permit, or agree

Assignment Of Rights Agreement

Jump to section, what is an assignment of rights agreement.

​​An assignment of rights agreement is a written document in which one party, the assignor, assigns to another party all or part of their rights under an existing contract. The most common example of this would be when someone wants to sell their shares of stock in a company.

When you buy shares from someone else (the seller), they agree to transfer them over and give up any control they had on that share. This way, another party can take ownership without going through the trouble of trying to buy the whole company themselves.

Common Sections in Assignment Of Rights Agreements

Below is a list of common sections included in Assignment Of Rights Agreements. These sections are linked to the below sample agreement for you to explore.

Assignment Of Rights Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-99.(H)(7) 5 dex99h7.htm FORM OF ASSIGNMENT AGREEMENT , Viewed December 20, 2021, View Source on SEC .

Who Helps With Assignment Of Rights Agreements?

Lawyers with backgrounds working on assignment of rights agreements work with clients to help. Do you need help with an assignment of rights agreement?

Post a project  in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate assignment of rights agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Meet some of our Assignment Of Rights Agreement Lawyers

⛵AJ has practiced in entertainment, technology, intellectual property, data privacy and protection, a broad array of domestic and international transactions, finance, and as outside General Counsel for startup and growth companies.

I offer top-tier legal expertise in startups, corporate governance, and general legal research. As a professor and published author of research articles and conference presentations, I have established myself as a legal expert, writer, and scholar. My strong research skills and innovative thinking make me a highly capable business consultant, legal adviser, and copywriter. Currently a member of the Minnesota bar. Recent freelance projects include business plans, contract drafting, legal advisory memoranda, due diligence, pre-trial motion practice, and discovery review.

Fabian graduated with honors from the University of Miami School of law, where he served as the articles and comments editor for the law school's Race and Social Justice Law Review. He received the John F. Evans Memorial Scholarship Award for excellence in the university's Litigation Skills Program and the HOPE Pro Bono award for completing more than one hundred (100) pro bono hours. Additionally, he received the CALI Excellence for the future award in Sports Law. He focuses his practice on corporate, real estate and immigration matters. Fabian has experience representing luxury hotel owners and operators in connection with the drafting of hotel management agreements, restaurant license agreements, and complex restaurant leases for domestic and international projects including: Nobu Tulum, Nobu Punta Cana, Nobu Orlando, Nobu Chicago and the Nickelodeon Hotel in Riviera Maya, Mexico, among others. He has represented clients in the commercial real estate industry in connection with the drafting of purchase and sale agreements, promissory notes, and mortgages. Lastly, Fabian routinely counsels corporate clients in connection with the drafting of articles of organization, operating agreements, and other documents related to acquisitions, restructurings and investments.

I am an experienced business coordinator with years of experience operating within an international setting where I discovered my passion for contracts and helping people. I became an attorney later in life to further and enhance these passions and to be able to help those in similar positions as I was find the legal help they need, and work with clients on a rate that is a fraction of the cost of going to a larger firm.

General corporate attorney specializing in commercial contracting and data privacy.

N'kia N.

I am a business law attorney with substantial experience with contracts and contract disputes. I support both "professional" services provider (such as consultants and advisors) and "creative" services providers (such as creators and ghostwriters). Future-proof your business with contracts that are customized to your unique goals. My special interests include services agreements, employment agreements, severance agreements, independent contractor agreements, termination agreements, restrictive covenants (such as confidentiality agreements/non-disclosure agreements, non-competition agreements, non-solicitation agreements, and non-disparagement agreements), alternative resolution agreements, and settlement agreements. *** Any reference to a "FREE consultation" is for a "Discovery Call" (legal information or information about my services). For legal advice, please schedule a "Strategy Call." [All calls are by appointment.] [I am not currently accepting new clients for disputes related to construction contracts or defects, real estate transactions, commercial or residential leases, or employment.] Address is for mail only.

Venus Caruso is a Florida-based attorney who has been helping companies and individuals with their contract needs for over 19 years. She leverages her 10 years spent as a complex commercial litigator and 7 years spent as in-house legal counsel to help clients with their contract needs, whether it’s preparing a contract or providing feedback and redlining. Some types of contracts that Venus can help you with include NDAs, digital agency agreements, marketing agreements, employment agreements, Florida LLC operating agreements, software development agreements, non-competition and non-solicitation agreements, non-circumvention agreements, sales rep agreements, software agreements, SaaS agreements, contract amendments, and termination of contract agreements.

Find the best lawyer for your project

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Business lawyers by top cities

• Austin Business Lawyers
• Boston Business Lawyers
• Chicago Business Lawyers
• Dallas Business Lawyers
• Denver Business Lawyers
• Houston Business Lawyers
• Los Angeles Business Lawyers
• New York Business Lawyers
• Phoenix Business Lawyers
• San Diego Business Lawyers
• Tampa Business Lawyers

Assignment Of Rights Agreement lawyers by city

• Austin Assignment Of Rights Agreement Lawyers
• Boston Assignment Of Rights Agreement Lawyers
• Chicago Assignment Of Rights Agreement Lawyers
• Dallas Assignment Of Rights Agreement Lawyers
• Denver Assignment Of Rights Agreement Lawyers
• Houston Assignment Of Rights Agreement Lawyers
• Los Angeles Assignment Of Rights Agreement Lawyers
• New York Assignment Of Rights Agreement Lawyers
• Phoenix Assignment Of Rights Agreement Lawyers
• San Diego Assignment Of Rights Agreement Lawyers
• Tampa Assignment Of Rights Agreement Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Find lawyers and attorneys by city

• Search Search Please fill out this field.
• Options and Derivatives
• Strategy & Education

Assignment: Definition in Finance, How It Works, and Examples

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

What Is an Assignment?

Assignment most often refers to one of two definitions in the financial world:

• The transfer of an individual's rights or property to another person or business. This concept exists in a variety of business transactions and is often spelled out contractually.
• In trading, assignment occurs when an option contract is exercised. The owner of the contract exercises the contract and assigns the option writer to an obligation to complete the requirements of the contract.

Key Takeaways

• Assignment is a transfer of rights or property from one party to another.
• Options assignments occur when option buyers exercise their rights to a position in a security.
• Other examples of assignments can be found in wages, mortgages, and leases.

Uses For Assignments

Assignment refers to the transfer of some or all property rights and obligations associated with an asset, property, contract, or other asset of value. to another entity through a written agreement.

Assignment rights happen every day in many different situations. A payee, like a utility or a merchant, assigns the right to collect payment from a written check to a bank. A merchant can assign the funds from a line of credit to a manufacturing third party that makes a product that the merchant will eventually sell. A trademark owner can transfer, sell, or give another person interest in the trademark or logo. A homeowner who sells their house assigns the deed to the new buyer.

To be effective, an assignment must involve parties with legal capacity, consideration, consent, and legality of the object.

A wage assignment is a forced payment of an obligation by automatic withholding from an employee’s pay. Courts issue wage assignments for people late with child or spousal support, taxes, loans, or other obligations. Money is automatically subtracted from a worker's paycheck without consent if they have a history of nonpayment. For example, a person delinquent on $100 monthly loan payments has a wage assignment deducting the money from their paycheck and sent to the lender. Wage assignments are helpful in paying back long-term debts.

Another instance can be found in a mortgage assignment. This is where a mortgage deed gives a lender interest in a mortgaged property in return for payments received. Lenders often sell mortgages to third parties, such as other lenders. A mortgage assignment document clarifies the assignment of contract and instructs the borrower in making future mortgage payments, and potentially modifies the mortgage terms.

A final example involves a lease assignment. This benefits a relocating tenant wanting to end a lease early or a landlord looking for rent payments to pay creditors. Once the new tenant signs the lease, taking over responsibility for rent payments and other obligations, the previous tenant is released from those responsibilities. In a separate lease assignment, a landlord agrees to pay a creditor through an assignment of rent due under rental property leases. The agreement is used to pay a mortgage lender if the landlord defaults on the loan or files for bankruptcy . Any rental income would then be paid directly to the lender.

Options Assignment

Options can be assigned when a buyer decides to exercise their right to buy (or sell) stock at a particular strike price . The corresponding seller of the option is not determined when a buyer opens an option trade, but only at the time that an option holder decides to exercise their right to buy stock. So an option seller with open positions is matched with the exercising buyer via automated lottery. The randomly selected seller is then assigned to fulfill the buyer's rights. This is known as an option assignment.

Once assigned, the writer (seller) of the option will have the obligation to sell (if a call option ) or buy (if a put option ) the designated number of shares of stock at the agreed-upon price (the strike price). For instance, if the writer sold calls they would be obligated to sell the stock, and the process is often referred to as having the stock called away . For puts, the buyer of the option sells stock (puts stock shares) to the writer in the form of a short-sold position.

Suppose a trader owns 100 call options on company ABC's stock with a strike price of $10 per share. The stock is now trading at $30 and ABC is due to pay a dividend shortly. As a result, the trader exercises the options early and receives 10,000 shares of ABC paid at $10. At the same time, the other side of the long call (the short call) is assigned the contract and must deliver the shares to the long.

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

Primary tabs

Assignee is a person to whom a right is transferred by the person holding such rights under the transferred contract (the “assignor”).  The act of transferring is referred to as “ assigning ” or “ assignment ” and is a concept found in both  contract  and  property  law. 

Contract Law  

Under contract law, when one party assigns a contract, the assignment represents both: (1) a transfer of rights; and (2) a delegation of  duties .  For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C.  Here, A has both: assigned A’s rights under the contract to receive the $50 to C, and delegated A’s  duty  to teach guitar to C.  In this example, A is the “assignor” because he/she assigns the contract to C. A is also the “primary obligor ,” meaning he/she will still be liable to B if C fails to teach B guitar. C is the “assignee,” since C is the party to whom A transfers the contract. C is also the “secondary obligor,” since he/she must perform the  obligations  to B. B is the ultimate recipient of the duty under the assignment, and is the “ obligee .”

There are a few notable rules regarding assignments under  contract  law.  First, if an individual has not yet secured the contract to perform duties to another, he/she cannot assign his/her future right to an assignee.  That is, if A has not yet contracted with B to teach B guitar, A cannot  assign  his/her rights to C.  Second, rights cannot be assigned when they materially change the obligor’s duty and rights.  Third, the primary  obligor  can sue the  assignee directly if the  assignee  does not perform the assigned duty. In guitar assignment example, if C does not teach B guitar, A can sue C for any liability that A incurs as a result of C’s failure to perform the assigned contract. Fourth, if the promised performance requires a rare genius or skill, then the primary obligor cannot assign the contract.  

Lastly, a related concept is  novation , which is when the secondary obligor substitutes and releases the primary obligor.  If  novation  occurs, then the primary obligor’s duties are extinguished under the contract. However,  novation  requires the obligee’s  consent . In the guitar example, if A, B, and C agree to novation, then A would not be liable if C fails to teach B guitar.

Property Law

Under  property  law, assignment typically arises in landlord-tenant situations.  For example, A might be renting from landlord B but wants C, a new tenant, to take over the lease.  In this scenario, A might be able to choose between  assigning  and  subleasing  the property to C.  If  assigning , A would be giving C the entire balance of the term, with no reversion to anyone. If subleasing , A would be giving C for a limited period of the remaining term.  Significantly, under assignment, C would have  privity  of  estate  with the landlord, while under a sublease, C would not.

[Last updated in December of 2021 by the Wex Definitions Team ]

• business law
• landlord & tenant
• property & real estate law
• trusts, inheritances & estates
• wex definitions

The Difference Between Cession Delegation and Assignment

HOME / The Difference Between Cession Delegation and Assignment

We’ve all heard the expressions before: someone is going to cede something to someone else. A supervisor or someone of that position is constantly delegating tasks to someone below themselves, or someone is being given an assignment that requires completion. All of these refer to some kind of a right, or obligation being given to another person. What are each of these and what is it that they do or mean?

The principles of Cession were very well set out by the South African Appellate Division in 1983 during the case of Johnson v Incorporated General Insurance Ltd in which it was held that cession in modern law is an act of transfer: it enables the transfer of a right to take place which is accomplished by way of an agreement to transfer the right. It is entered into between a Cedent and a Cessionary, which arises from a lawful cause in which a Cedent intends to transfer its right to a claim to a Cessionary who intends to become the holder of the right. The Cessionary is then further entitled to cede that right to someone should they choose to do so. This means that any right that Cedent once had is given to the Cessionary who becomes the owner of the right and a Cedent would no longer have any claim to that right.

A very simple example would be the following; lets say that X renders services to Y for an amount of R100. Z owes Y R100 because they lost a bet with one another. In order to make things simple, Y could cede his right to receive payment from Z to X, and X could therefore claim the R100 from Z directly. This has the effect of putting a new creditor into the shoes of the old creditor. However, let’s say that Z does not pay X, and court proceedings ensue. X would no longer be able to claim from Y as Y ceded his right to the R100 from Z to X. Y therefore no longer has the capacity to sue or be sued for that amount, his role would be no more than that of a witness who may testify to that effect.

Delegation, put simply, is the act of giving another person the responsibility of carrying out a performance that you contracted into. Therefore, in the commission of delegation there are 3 persons involved; The delegator (this is the person who actually incurred the obligation to perform), the delegate (this is the person to whom the responsibility of performing the obligation has been given), and finally the person to whom the obligation is due to, this person is known as the obligee.

A very practical example would be the following; A contacts B who owns a well known swimming pool company. A explains to B that his pool is terribly dirty and would like for B to arrange for his pool to be cleaned. B, after obtaining consent from A, then sends an employee, C, to go and clean the swimming pool. The contract was entered into between A and B, however the actual task of fulfilling the obligation was done by C. Should anything go wrong however, for example C accidentally broke the pool light while sweeping; B (as the delegator) would be held liable and accountable by A for any damage caused by C in carrying out what he had been delegated to do.

Assignment is a process which denotes a transfer of both rights and obligations. Christie, in the book The Law of Contract in South Africa, 4th Edition, 2001, describes assignment as the following; “Stepping into another’s shoes involves acquiring his rights , which can be done by cession without the debtors consent, and undertaking his obligations, which can be done by delegation with the creditors consent. Since the lesser is included in the greater it follows that the whole process of substitution cannot take place without the consent of the other Party to the contract.” It therefore combines both cession and delegation.

An example of assignment could be this. You sought out a new business venture and as a result of this you bought a company. This company came with numerous clients and employees. With assignment having taken place, you carry all the rights and responsibilities of an employer as the previous employer has now fallen away.

In the most basic way possible, Cession, Delegation and Assignment could be explained like this;

Cession is the transfer of a right from one person to another, delegation is the transfer of an obligation or duty from one person to another and assignment is a combination of the two.

Duncan O’Connor

Candidate Attorney

Book a Consultation

Select Commercial Law Family Law Divorce Protection Order Estate Planning Maintenance Other Send me a copy

© 2024 Martin Vermaak Attorneys . All rights reserved.

Company Start-up

Company maintenance, website compliance, employment law, protection of personal information act, divorce cheat sheet.

Sign Up to our Divorce Newsletters to get instant access to our Divorce Cheat Sheet

• New Hampshire
• North Carolina
• Pennsylvania
• West Virginia
• Online hoaxes
• Coronavirus
• Health Care
• Immigration
• Environment
• Foreign Policy
• Kamala Harris
• Donald Trump
• Mitch McConnell
• Hakeem Jeffries
• Ron DeSantis
• Tucker Carlson
• Sean Hannity
• Rachel Maddow
• PolitiFact Videos
• 2024 Elections
• Mostly True
• Mostly False
• Pants on Fire
• Biden Promise Tracker
• Trump-O-Meter
• Latest Promises
• Our Process
• Who pays for PolitiFact?
• Advertise with Us
• Suggest a Fact-check
• Corrections and Updates
• Newsletters

Stand up for the facts!

Our only agenda is to publish the truth so you can be an informed participant in democracy. We need your help.

I would like to contribute

• Legal Issues
• Social Media

Former President Donald Trump reacts May 28, 2024, as he reenters Manhattan criminal court in New York. (AP)

Fact-checking the False claim that the Trump’s NY jury verdict doesn’t have to be unanimous

If your time is short.

On May 29, Juan Merchan, the judge in former President Donald Trump’s Manhattan trial, gave the jury instructions for their deliberation, which are posted online.

He told jurors that to find Trump guilty, they must agree unanimously on two things: that Trump falsified business records and that he did so intending to commit a separate crime.

Merchan said jurors did not have to agree unanimously on what the separate crime was that Trump intended to commit.

As the jury in the Manhattan trial of former President Donald Trump headed toward deliberation May 29, Judge Juan Merchan gave jurors their instructions.

Once the instructions filtered onto social media, however, they were distorted. 

"Judge Merchan has instructed the jury they do not need to have a UNANIMOUS verdict in order to convict former President Donald J. Trump," former Fox News writer and producer Kyle Becker wrote May 29 on X .

"This is insane," the conservative End Wokeness X account posted a few minutes later to its 2.5 million followers. "New York Judge Merchan just told jurors that they DO NOT have to unanimously agree on what crime Trump is guilty of."

Other social media posts, including from Trump-aligned political strategist Steve Bannon , also claimed the jury verdict did not have to be unanimous. The posts echoed a statement Trump made May 26 on Truth Social that said Merchan imparted "FAKE options for the jury to choose from, without requiring them to be unanimous, which is completely UNAMERICAN AND UNCONSTITUTIONAL."

Trump’s campaign did not respond to a request for comment.

The posts are inaccurate. If the jury decides to convict, Merchan told them, jurors must agree unanimously on two things: that Trump falsified business records and that he did so intending to commit a separate crime.

Juror unanimity is not necessary on what separate crime Trump intended to commit. Merchan cited three possible crimes: violations of the Federal Election Campaign Act; the falsification of other business records; and a violation of tax laws.

Jurors "all need to agree on the verdict, but they can get to that result through different paths and reasoning," said Cheryl G. Bader, a Fordham University associate clinical law professor.

Duncan P. Levin, a Brooklyn, New York-based lawyer with Levin & Associates PLLC, called the social media spin on Marchan’s instructions "absurd."

"It has to be unanimous on the elements of the crime," namely that Trump "caused business records to be filed (and) intended to conceal election by unlawful means," Levin said. But it doesn’t have to be unanimous on the means, he said. 

"That is not unusual at all. (It’s) very standard," Levin said. "Someone can be convicted of murder even if the jurors disagree about the type of murder weapon."

Featured Fact-check

In his instructions , Merchan told jurors that any verdict must be unanimous.

"Your verdict, on each count you consider, whether guilty or not guilty, must be unanimous; that is, each and every juror must agree to it," Merchan said. "To reach a unanimous verdict, you must deliberate with the other jurors."

That’s standard in criminal law: The New York jury handbook says that in a criminal case, "a finding that the defendant is guilty or not guilty must be by unanimous vote of the jury."

But Merchan offered caveats about what aspects of a jury’s decision could diverge.

Merchan said, "In order to find the defendant guilty, however, you need not be unanimous on whether the defendant committed the crime personally, or by acting in concert with another, or both."

He also said, "Although you must conclude unanimously that the defendant conspired to promote or prevent the election of any person to a public office by unlawful means, you need not be unanimous as to what those unlawful means were."

Neama Rahmani, a former prosecutor who co-founded the firm West Coast Trial Lawyers, said, "The verdict has to be unanimous, but the jurors don’t have to agree on the other crime that the false business records furthered or covered up." 

Bill Otis, former head of the Appellate Division of the U.S. attorney’s office for Virginia’s Eastern District and special counsel to former President George H.W. Bush, said that although this split structure for jury decisions is common, he understands why Trump allies express concern about it. Otis said the parts of this case that do not require the jury’s unanimity are unusually central to the question of Trump’s guilt.

For this reason, Otis said, it could become a ripe issue for an appeals court to consider, if Trump is convicted.

Social media posts said Merchan told jurors the verdict in Trump’s trial does not need to be unanimous.

That’s not what Merchan said. To convict, the jurors must agree unanimously on two things: that Trump falsified business records, and that he did so intending to commit a separate crime. "Your verdict, on each count you consider, whether guilty or not guilty, must be unanimous," Merchan said. 

The social media posts conflated this requirement with other aspects of the deliberations that don’t require unanimity — notably, which specific crime the jurors believe Trump tried to commit by falsifying business records. The judge said jurors would need to believe only that at least one of three cited crimes could be the one furthered by the records falsification. 

We rate this statement False.

RELATED : Read all of PolitiFact’s coverage on Donald Trump indictments

Read About Our Process

The Principles of the Truth-O-Meter

Our Sources

Judge Juan Merchan, Jury instructions , delivered to jury May 29, 2024

New York State Unified Court System, Petit juror’s handbook , Revised July 2023

Donald Trump, Truth Social post , May 26, 2024

Bannon’s War Room, Instagram post , May 29, 2024

Juan4Freedom, Instagram post , May 29, 2024

Proud Elephant, Instagram post , May 29, 2024

Dennis Michael Lynch, Meta post , May 29, 2024

Kyle Becker, post on X , May 29, 2024

Washington Post, Jurors must be unanimous to convict Trump, can disagree on underlying crimes , May 29, 2024

New York Times, Live Updates: Jury Begins Deciding Trump’s Fate in Hush-Money Case , May 29, 2024

AP, Jury in Donald Trump’s hush money case asks to rehear testimony as deliberations get underway , May 29, 2024

Politico, Judge: To convict Trump of felonies, jury does not need to unanimously agree on what 'predicate' crime he committed , May 21, 2024

Email interview with Matthew J. Galluzzo, former Manhattan prosecutor now in private practice, May 29, 2024

Email interview Duncan P. Levin, Brooklyn-based lawyer with the firm Levin & Associates PLLC, May 29, 2024

Email interview with Jerry Goldfeder, New York election law attorney, May 29, 2024

Email interview with Cheryl G. Bader, associate clinical law professor at Fordham University, May 29, 2024

Email interview with Neama Rahmani, former prosecutor who co-founded the firm West Coast Trial Lawyers, May 29, 2024

Email interview with Bill Otis, former head of the Appellate Division of the United States Attorney’s Office for the Eastern District of Virginia and Special Counsel to George H. W. Bush, May 29, 2024

Browse the Truth-O-Meter

More by louis jacobson.

Support independent fact-checking. Become a member!

• My View My View
• Following Following
• Saved Saved

Explainer: What does Louisiana's new abortion pill law mean for patients?

• Medium Text

HOW DOES LOUISIANA'S LAW ADD TO ABORTION RESTRICTIONS?

Who else is affected, could the law be challenged in court, are other states considering similar laws, where else is the fight over abortion pills unfolding.

Sign up here.

Reporting by Ahmed Aboulenein in Washington and Brendan Pierson in New York; Editing by Josie Kao

Our Standards: The Thomson Reuters Trust Principles. New Tab , opens new tab

Thomson Reuters

Washington-based correspondent covering U.S. healthcare and pharmaceutical policy with a focus on the Department of Health and Human Services and the agencies it oversees such as the Food and Drug Administration, previously based in Iraq and Egypt.

Brendan Pierson reports on product liability litigation and on all areas of health care law. He can be reached at [email protected].

Business Chevron

KKR wins EU nod for $24 billion Telecom Italia fixed-line network deal

U.S. investment firm KKR secured unconditional EU antitrust approval on Thursday for its 22-billion-euro ($24 billion) acquisition of Telecom Italia's (TIM) fixed-line network.

Will closing arguments make a difference to the jury in Donald Trump’s hush-money trial?

• Search Search

Jurors in the criminal trial of Donald Trump heard closing arguments Tuesday. A Northeastern law expert explains why they are important.

• Copy Link Link Copied!

Jurors in the criminal trial of Donald Trump heard closing arguments Tuesday from the former president’s defense lawyer and the prosecutor of the hush-money case.

In accordance with New York law, the defense delivered its statement first. 

This is the first criminal trial in American history involving a former president. Trump has been charged with 34 felony counts of falsifying business records in order to conceal damaging information that could hurt his 2016 presidential election campaign. 

In particular, it is alleged that Trump concealed a $130,000 payment via his then-lawyer Michael Cohen to Stephanie Clifford, the adult film actor known as Stormy Daniels.

Featured Stories

Northeastern University and Marymount Manhattan College in New York City agree to pursue merger

ShotSpotter improves detection and response to gunfire, but doesn’t reduce crime, Northeastern research finds

Kendall Coyne Schofield leads Minnesota to inaugural PWHL championship in a reunion of Northeastern stars

Top France Covid adviser to share her experiences during London symposium hosted by Northeastern

The trial started on April 15, and the jury heard 22 witnesses across 16 days of testimony. The case is expected to go to the jury on Wednesday. Judge Juan M. Merchan will give instructions to the jury before deliberations.

Northeastern Global News spoke to Rose Zoltek-Jick , an associate teaching professor at the Northeastern University School of Law, about the purpose of closing arguments at a trial and the impact they can have on jurors deciding a case.

What is the role of closing arguments in the whole process of a trial?

A closing is not evidence, but it is an argument where the lawyer gets to put together the case that they have presented or refute the case that the other side has presented, or try to poke holes in it. 

It is a story. At trial, evidence comes in piece by piece, document by document, witness by witness. Opening and closing arguments are the two chances that a lawyer has to build a story that puts it all together. 

So a closing is a chance to say this is what has happened in the trial, and this is how to understand it.

Does a closing argument impact the jury?

Yes, of course it does, because it helps the jury understand the whole story. In this case [Trump’s hush-money trial], the case has gone on for several weeks, the prosecution called [more than] 20 witnesses. It’s hard to put it all together or remember it all. 

The person who has the burden of proof, in this case the prosecution, tried to show that they had proven the case against President Trump beyond a reasonable doubt. So they have to put all the evidence together to show that one piece of evidence relates to another piece of evidence, and how the whole thing hangs together because some evidence doesn’t become clear until other evidence also comes in.

What does the term ‘burden of proof’ mean?

The prosecution has to show on its own and in its own case or through the trial that the defendant has committed a crime on the books beyond a reasonable doubt. Every criminal case must be proven beyond a reasonable doubt by the evidence.

And how would you explain what is reasonable doubt?

[It means] that there is no reason to doubt the case. There is no reasonable reason for the jury not to believe the prosecution’s proof, that the case has been proven to the level of moral certainty, that they can convict and feel confident that they have made the right decision.

In a criminal case, one of the arguments available to [defense] is that the prosecutor has not produced enough evidence or enough quality evidence, or enough evidence that is credible to meet their burden that the case has been proven beyond a reasonable doubt.

It’s a difficult term to define, and judges and courts have struggled with the definition. It refers to the quantity and quality of the evidence that the jury chooses to believe is true.

Does the order in which closing arguments are delivered matter?

In New York, the defendant goes first. In many jurisdictions, the prosecutor goes first and the defendant answers. The prosecution may on occasion get a chance to do a very short rebuttal of anything new that the defendant has raised in their closing. 

But New York is unusual in having the defendant go first. The reasoning for that is that the prosecution bears the burden of proof and that they should have the last chance to tell the jury that they have in fact met that burden.

Other jurisdictions see it in the opposite way. That the prosecution should go first, but the defendant should have the last word under the theory that the person who has the last word has a real chance to have their argument stick with the jury as they go into the jury room.

It’s a different sort of psychology as to whether going first is more important or going last is more important, and which order most conforms with the responsibility of the prosecution. The constitutional duty that the prosecution has under the due process clause [is] to satisfy the burden of proof. There’s an argument as to which order is congruent or aligns with that burden.

Recent Stories