Assignor vs Assignee

The primary difference between an assignor and an assignee is the role that they play in a contract assignment. The assignor is the original party who transfers the rights and obligations of the contract to a third party known as the assignee, who is originally not part of the assignment. For example, the assignor (original party) may enter into an agreement to sell their investments in properties, with all the proceeds and obligations to be given to the assignee (third party). In contract law, the assignment is a common practice that can be seen in various contractual agreements and it is simply the transfer of rights and obligations from one party to another.

• An assignor and an assignee are part of the same contract assignment. Still, the difference between them is that an assignor is the transferor of the rights and obligations of the assignment, while an assignee is the recipient of the rights and obligations.
• An assignor holds the authority to limit an assignee’s scope of the operation or enforce additional contract assignment conditions.
• Once the assignment is over, the assignee has to relinquish the rights back to the assignor.

An assignor can either be a person or an entity who transfers the rights it holds or obligations to another entity. In other words, the assignor is the original party to the contract, which passes on both contractual obligations and benefits to another party. The assignor can limit the assignment's scope of operation and enforce conditions to ensure smooth execution of the assignment. In some of the assignments, the assignor is not completely relieved from the contractual obligations. They are required to provide an assurance or guarantee about the performance of the underlying contract. This means that if the assignee fails to perform the contract's terms, then the assignor will be obligated to fulfil the same.

An assignee can either be a person or an entity at the receiving end of the transfer of rights and obligations from the original party as per the terms of the underlying contract. It is to be noted that the assignee doesn’t start as one of the original parties to the contract. The assignee receives the rights and obligations directly from the assignor. An assignee can be transferred the right or title to anything, such as real estate, property, intellectual property, etc. The transfer can also be of benefits that are tangible or intangible in nature. Nevertheless, the rights and benefits of an assignee are purely dictated by the assignor.

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This has been a guide to Assignor vs Assignee. Here we discuss the top 4 differences between assignor and assignee along with infographics. You may also have a look at the following useful articles –

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