legal term of assignment

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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.

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assignments basic law

Assignments: The Basic Law

The assignment of a right or obligation is a common contractual event under the law and the right to assign (or prohibition against assignments) is found in the majority of agreements, leases and business structural documents created in the United States.

As with many terms commonly used, people are familiar with the term but often are not aware or fully aware of what the terms entail. The concept of assignment of rights and obligations is one of those simple concepts with wide ranging ramifications in the contractual and business context and the law imposes severe restrictions on the validity and effect of assignment in many instances. Clear contractual provisions concerning assignments and rights should be in every document and structure created and this article will outline why such drafting is essential for the creation of appropriate and effective contracts and structures.

The reader should first read the article on Limited Liability Entities in the United States and Contracts since the information in those articles will be assumed in this article.

Basic Definitions and Concepts:

An assignment is the transfer of rights held by one party called the “assignor” to another party called the “assignee.” The legal nature of the assignment and the contractual terms of the agreement between the parties determines some additional rights and liabilities that accompany the assignment. The assignment of rights under a contract usually completely transfers the rights to the assignee to receive the benefits accruing under the contract. Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court , 35 Cal. 2d 109, 113-114 (Cal. 1950).

An assignment will generally be permitted under the law unless there is an express prohibition against assignment in the underlying contract or lease. Where assignments are permitted, the assignor need not consult the other party to the contract but may merely assign the rights at that time. However, an assignment cannot have any adverse effect on the duties of the other party to the contract, nor can it diminish the chance of the other party receiving complete performance. The assignor normally remains liable unless there is an agreement to the contrary by the other party to the contract.

The effect of a valid assignment is to remove privity between the assignor and the obligor and create privity between the obligor and the assignee. Privity is usually defined as a direct and immediate contractual relationship. See Merchants case above.

Further, for the assignment to be effective in most jurisdictions, it must occur in the present. One does not normally assign a future right; the assignment vests immediate rights and obligations.

No specific language is required to create an assignment so long as the assignor makes clear his/her intent to assign identified contractual rights to the assignee. Since expensive litigation can erupt from ambiguous or vague language, obtaining the correct verbiage is vital. An agreement must manifest the intent to transfer rights and can either be oral or in writing and the rights assigned must be certain.

Note that an assignment of an interest is the transfer of some identifiable property, claim, or right from the assignor to the assignee. The assignment operates to transfer to the assignee all of the rights, title, or interest of the assignor in the thing assigned. A transfer of all rights, title, and interests conveys everything that the assignor owned in the thing assigned and the assignee stands in the shoes of the assignor. Knott v. McDonald’s Corp ., 985 F. Supp. 1222 (N.D. Cal. 1997)

The parties must intend to effectuate an assignment at the time of the transfer, although no particular language or procedure is necessary. As long ago as the case of National Reserve Co. v. Metropolitan Trust Co ., 17 Cal. 2d 827 (Cal. 1941), the court held that in determining what rights or interests pass under an assignment, the intention of the parties as manifested in the instrument is controlling.

The intent of the parties to an assignment is a question of fact to be derived not only from the instrument executed by the parties but also from the surrounding circumstances. When there is no writing to evidence the intention to transfer some identifiable property, claim, or right, it is necessary to scrutinize the surrounding circumstances and parties’ acts to ascertain their intentions. Strosberg v. Brauvin Realty Servs., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998)

The general rule applicable to assignments of choses in action is that an assignment, unless there is a contract to the contrary, carries with it all securities held by the assignor as collateral to the claim and all rights incidental thereto and vests in the assignee the equitable title to such collateral securities and incidental rights. An unqualified assignment of a contract or chose in action, however, with no indication of the intent of the parties, vests in the assignee the assigned contract or chose and all rights and remedies incidental thereto.

More examples: In Strosberg v. Brauvin Realty Servs ., 295 Ill. App. 3d 17 (Ill. App. Ct. 1st Dist. 1998), the court held that the assignee of a party to a subordination agreement is entitled to the benefits and is subject to the burdens of the agreement. In Florida E. C. R. Co. v. Eno , 99 Fla. 887 (Fla. 1930), the court held that the mere assignment of all sums due in and of itself creates no different or other liability of the owner to the assignee than that which existed from the owner to the assignor.

And note that even though an assignment vests in the assignee all rights, remedies, and contingent benefits which are incidental to the thing assigned, those which are personal to the assignor and for his sole benefit are not assigned. Rasp v. Hidden Valley Lake, Inc ., 519 N.E.2d 153, 158 (Ind. Ct. App. 1988). Thus, if the underlying agreement provides that a service can only be provided to X, X cannot assign that right to Y.

Novation Compared to Assignment:

Although the difference between a novation and an assignment may appear narrow, it is an essential one. “Novation is a act whereby one party transfers all its obligations and benefits under a contract to a third party.” In a novation, a third party successfully substitutes the original party as a party to the contract. “When a contract is novated, the other contracting party must be left in the same position he was in prior to the novation being made.”

A sublease is the transfer when a tenant retains some right of reentry onto the leased premises. However, if the tenant transfers the entire leasehold estate, retaining no right of reentry or other reversionary interest, then the transfer is an assignment. The assignor is normally also removed from liability to the landlord only if the landlord consents or allowed that right in the lease. In a sublease, the original tenant is not released from the obligations of the original lease.

Equitable Assignments:

An equitable assignment is one in which one has a future interest and is not valid at law but valid in a court of equity. In National Bank of Republic v. United Sec. Life Ins. & Trust Co. , 17 App. D.C. 112 (D.C. Cir. 1900), the court held that to constitute an equitable assignment of a chose in action, the following has to occur generally: anything said written or done, in pursuance of an agreement and for valuable consideration, or in consideration of an antecedent debt, to place a chose in action or fund out of the control of the owner, and appropriate it to or in favor of another person, amounts to an equitable assignment. Thus, an agreement, between a debtor and a creditor, that the debt shall be paid out of a specific fund going to the debtor may operate as an equitable assignment.

In Egyptian Navigation Co. v. Baker Invs. Corp. , 2008 U.S. Dist. LEXIS 30804 (S.D.N.Y. Apr. 14, 2008), the court stated that an equitable assignment occurs under English law when an assignor, with an intent to transfer his/her right to a chose in action, informs the assignee about the right so transferred.

An executory agreement or a declaration of trust are also equitable assignments if unenforceable as assignments by a court of law but enforceable by a court of equity exercising sound discretion according to the circumstances of the case. Since California combines courts of equity and courts of law, the same court would hear arguments as to whether an equitable assignment had occurred. Quite often, such relief is granted to avoid fraud or unjust enrichment.

Note that obtaining an assignment through fraudulent means invalidates the assignment. Fraud destroys the validity of everything into which it enters. It vitiates the most solemn contracts, documents, and even judgments. Walker v. Rich , 79 Cal. App. 139 (Cal. App. 1926). If an assignment is made with the fraudulent intent to delay, hinder, and defraud creditors, then it is void as fraudulent in fact. See our article on Transfers to Defraud Creditors .

But note that the motives that prompted an assignor to make the transfer will be considered as immaterial and will constitute no defense to an action by the assignee, if an assignment is considered as valid in all other respects.

Enforceability of Assignments:

Whether a right under a contract is capable of being transferred is determined by the law of the place where the contract was entered into. The validity and effect of an assignment is determined by the law of the place of assignment. The validity of an assignment of a contractual right is governed by the law of the state with the most significant relationship to the assignment and the parties.

In some jurisdictions, the traditional conflict of laws rules governing assignments has been rejected and the law of the place having the most significant contacts with the assignment applies. In Downs v. American Mut. Liability Ins. Co ., 14 N.Y.2d 266 (N.Y. 1964), a wife and her husband separated and the wife obtained a judgment of separation from the husband in New York. The judgment required the husband to pay a certain yearly sum to the wife. The husband assigned 50 percent of his future salary, wages, and earnings to the wife. The agreement authorized the employer to make such payments to the wife.

After the husband moved from New York, the wife learned that he was employed by an employer in Massachusetts. She sent the proper notice and demanded payment under the agreement. The employer refused and the wife brought an action for enforcement. The court observed that Massachusetts did not prohibit assignment of the husband’s wages. Moreover, Massachusetts law was not controlling because New York had the most significant relationship with the assignment. Therefore, the court ruled in favor of the wife.

Therefore, the validity of an assignment is determined by looking to the law of the forum with the most significant relationship to the assignment itself. To determine the applicable law of assignments, the court must look to the law of the state which is most significantly related to the principal issue before it.

Assignment of Contractual Rights:

Generally, the law allows the assignment of a contractual right unless the substitution of rights would materially change the duty of the obligor, materially increase the burden or risk imposed on the obligor by the contract, materially impair the chance of obtaining return performance, or materially reduce the value of the performance to the obligor. Restat 2d of Contracts, § 317(2)(a). This presumes that the underlying agreement is silent on the right to assign.

If the contract specifically precludes assignment, the contractual right is not assignable. Whether a contract is assignable is a matter of contractual intent and one must look to the language used by the parties to discern that intent.

In the absence of an express provision to the contrary, the rights and duties under a bilateral executory contract that does not involve personal skill, trust, or confidence may be assigned without the consent of the other party. But note that an assignment is invalid if it would materially alter the other party’s duties and responsibilities. Once an assignment is effective, the assignee stands in the shoes of the assignor and assumes all of assignor’s rights. Hence, after a valid assignment, the assignor’s right to performance is extinguished, transferred to assignee, and the assignee possesses the same rights, benefits, and remedies assignor once possessed. Robert Lamb Hart Planners & Architects v. Evergreen, Ltd. , 787 F. Supp. 753 (S.D. Ohio 1992).

On the other hand, an assignee’s right against the obligor is subject to “all of the limitations of the assignor’s right, all defenses thereto, and all set-offs and counterclaims which would have been available against the assignor had there been no assignment, provided that these defenses and set-offs are based on facts existing at the time of the assignment.” See Robert Lamb , case, above.

The power of the contract to restrict assignment is broad. Usually, contractual provisions that restrict assignment of the contract without the consent of the obligor are valid and enforceable, even when there is statutory authorization for the assignment. The restriction of the power to assign is often ineffective unless the restriction is expressly and precisely stated. Anti-assignment clauses are effective only if they contain clear, unambiguous language of prohibition. Anti-assignment clauses protect only the obligor and do not affect the transaction between the assignee and assignor.

Usually, a prohibition against the assignment of a contract does not prevent an assignment of the right to receive payments due, unless circumstances indicate the contrary. Moreover, the contracting parties cannot, by a mere non-assignment provision, prevent the effectual alienation of the right to money which becomes due under the contract.

A contract provision prohibiting or restricting an assignment may be waived, or a party may so act as to be estopped from objecting to the assignment, such as by effectively ratifying the assignment. The power to void an assignment made in violation of an anti-assignment clause may be waived either before or after the assignment. See our article on Contracts.

Noncompete Clauses and Assignments:

Of critical import to most buyers of businesses is the ability to ensure that key employees of the business being purchased cannot start a competing company. Some states strictly limit such clauses, some do allow them. California does restrict noncompete clauses, only allowing them under certain circumstances. A common question in those states that do allow them is whether such rights can be assigned to a new party, such as the buyer of the buyer.

A covenant not to compete, also called a non-competitive clause, is a formal agreement prohibiting one party from performing similar work or business within a designated area for a specified amount of time. This type of clause is generally included in contracts between employer and employee and contracts between buyer and seller of a business.

Many workers sign a covenant not to compete as part of the paperwork required for employment. It may be a separate document similar to a non-disclosure agreement, or buried within a number of other clauses in a contract. A covenant not to compete is generally legal and enforceable, although there are some exceptions and restrictions.

Whenever a company recruits skilled employees, it invests a significant amount of time and training. For example, it often takes years before a research chemist or a design engineer develops a workable knowledge of a company’s product line, including trade secrets and highly sensitive information. Once an employee gains this knowledge and experience, however, all sorts of things can happen. The employee could work for the company until retirement, accept a better offer from a competing company or start up his or her own business.

A covenant not to compete may cover a number of potential issues between employers and former employees. Many companies spend years developing a local base of customers or clients. It is important that this customer base not fall into the hands of local competitors. When an employee signs a covenant not to compete, he or she usually agrees not to use insider knowledge of the company’s customer base to disadvantage the company. The covenant not to compete often defines a broad geographical area considered off-limits to former employees, possibly tens or hundreds of miles.

Another area of concern covered by a covenant not to compete is a potential ‘brain drain’. Some high-level former employees may seek to recruit others from the same company to create new competition. Retention of employees, especially those with unique skills or proprietary knowledge, is vital for most companies, so a covenant not to compete may spell out definite restrictions on the hiring or recruiting of employees.

A covenant not to compete may also define a specific amount of time before a former employee can seek employment in a similar field. Many companies offer a substantial severance package to make sure former employees are financially solvent until the terms of the covenant not to compete have been met.

Because the use of a covenant not to compete can be controversial, a handful of states, including California, have largely banned this type of contractual language. The legal enforcement of these agreements falls on individual states, and many have sided with the employee during arbitration or litigation. A covenant not to compete must be reasonable and specific, with defined time periods and coverage areas. If the agreement gives the company too much power over former employees or is ambiguous, state courts may declare it to be overbroad and therefore unenforceable. In such case, the employee would be free to pursue any employment opportunity, including working for a direct competitor or starting up a new company of his or her own.

It has been held that an employee’s covenant not to compete is assignable where one business is transferred to another, that a merger does not constitute an assignment of a covenant not to compete, and that a covenant not to compete is enforceable by a successor to the employer where the assignment does not create an added burden of employment or other disadvantage to the employee. However, in some states such as Hawaii, it has also been held that a covenant not to compete is not assignable and under various statutes for various reasons that such covenants are not enforceable against an employee by a successor to the employer. Hawaii v. Gannett Pac. Corp. , 99 F. Supp. 2d 1241 (D. Haw. 1999)

It is vital to obtain the relevant law of the applicable state before drafting or attempting to enforce assignment rights in this particular area.

Conclusion:

In the current business world of fast changing structures, agreements, employees and projects, the ability to assign rights and obligations is essential to allow flexibility and adjustment to new situations. Conversely, the ability to hold a contracting party into the deal may be essential for the future of a party. Thus, the law of assignments and the restriction on same is a critical aspect of every agreement and every structure. This basic provision is often glanced at by the contracting parties, or scribbled into the deal at the last minute but can easily become the most vital part of the transaction.

As an example, one client of ours came into the office outraged that his co venturer on a sizable exporting agreement, who had excellent connections in Brazil, had elected to pursue another venture instead and assigned the agreement to a party unknown to our client and without the business contacts our client considered vital. When we examined the handwritten agreement our client had drafted in a restaurant in Sao Paolo, we discovered there was no restriction on assignment whatsoever…our client had not even considered that right when drafting the agreement after a full day of work.

One choses who one does business with carefully…to ensure that one’s choice remains the party on the other side of the contract, one must master the ability to negotiate proper assignment provisions.

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Assignment Law: Everything You Need to Know

In legal terms, the meaning of an assignment is a contractual obligation to transfer a property title or right from one party to another. 3 min read updated on February 01, 2023

The term assignment law is used in the law of real estate and in the law of contracts. In both instances, it relates to the transfer of rights held by one party (the assignor) to another party (the assignee).

Assignment Law

In legal terms, the meaning of an assignment is a contractual obligation to transfer a property title or right from one party to another. Generally, the assignment is transferred based on an entire interest in the property, chattel, estate, or other item assigned.

A grant is different from an assignment in that an assignment refers to the right to transfer the property. This is considered an intangible right. On the other hand, the grant is concerned about the physical transfer of property. This is a tangible right. For example, a payee can assign their rights to collect a note payment to a bank.

The terms of the contract must be analyzed to determine if the right of assignment is prohibited. For example, a property owner may allow a lease to be assigned, ordinarily along with an assumption agreement, where the new tenant is now responsible for the payments and duties of the lease.

The holder of a trademark may transfer it, either by giving or selling their interest in the trademark to another party. This is referred to as an assignment. The party that receives the benefit is called the assignee. Once transferred, the assignee has the ability to exclude others from using their trademark.

In order for the assignment to be enforceable, it must be in writing and have the goodwill of the company attached to the mark. For an assignment to be effective, it must contain the fundamental aspects of a contract, such as:

Parties with legal capacity
Legality of object
Consideration consent

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 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.

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Legal Assignment
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Assignment Of Contracts
Delegation vs Assignment
Assignment of Contract Rights

Assignment of Contract

Jump to section, what is an assignment of contract.

An assignment of contract is a legal term that describes the process that occurs when the original party (assignor) transfers their rights and obligations under their contract to a third party (assignee). When an assignment of contract happens, the original party is relieved of their contractual duties, and their role is replaced by the approved incoming party.

How Does Assignment of Contract Work?

An assignment of contract is simpler than you might think.

The process starts with an existing contract party who wishes to transfer their contractual obligations to a new party.

When this occurs, the existing contract party must first confirm that an assignment of contract is permissible under the legally binding agreement . Some contracts prohibit assignments of contract altogether, and some require the other parties of the agreement to agree to the transfer. However, the general rule is that contracts are freely assignable unless there is an explicit provision that says otherwise.

In other cases, some contracts allow an assignment of contract without any formal notification to other contract parties. If this is the case, once the existing contract party decides to reassign his duties, he must create a “Letter of Assignment ” to notify any other contract signers of the change.

The Letter of Assignment must include details about who is to take over the contractual obligations of the exiting party and when the transfer will take place. If the assignment is valid, the assignor is not required to obtain the consent or signature of the other parties to the original contract for the valid assignment to take place.

Check out this article to learn more about how assigning a contract works.

Contract Assignment Examples

Contract assignments are great tools for contract parties to use when they wish to transfer their commitments to a third party. Here are some examples of contract assignments to help you better understand them:

Anna signs a contract with a local trash company that entitles her to have her trash picked up twice a week. A year later, the trash company transferred her contract to a new trash service provider. This contract assignment effectively makes Anna’s contract now with the new service provider.

Hasina enters a contract with a national phone company for cell phone service. The company goes into bankruptcy and needs to close its doors but decides to transfer all current contracts to another provider who agrees to honor the same rates and level of service. The contract assignment is completed, and Hasina now has a contract with the new phone company as a result.

Here is an article where you can find out more about contract assignments.

Assignment of Contract in Real Estate

Assignment of contract is also used in real estate to make money without going the well-known routes of buying and flipping houses. When real estate LLC investors use an assignment of contract, they can make money off properties without ever actually buying them by instead opting to transfer real estate contracts .

This process is called real estate wholesaling.

Real Estate Wholesaling

Real estate wholesaling consists of locating deals on houses that you don’t plan to buy but instead plan to enter a contract to reassign the house to another buyer and pocket the profit.

The process is simple: real estate wholesalers negotiate purchase contracts with sellers. Then, they present these contracts to buyers who pay them an assignment fee for transferring the contract.

This process works because a real estate purchase agreement does not come with the obligation to buy a property. Instead, it sets forth certain purchasing parameters that must be fulfilled by the buyer of the property. In a nutshell, whoever signs the purchase contract has the right to buy the property, but those rights can usually be transferred by means of an assignment of contract.

This means that as long as the buyer who’s involved in the assignment of contract agrees with the purchasing terms, they can legally take over the contract.

But how do real estate wholesalers find these properties?

It is easier than you might think. Here are a few examples of ways that wholesalers find cheap houses to turn a profit on:

Direct mailers
Place newspaper ads
Make posts in online forums
Social media posts

The key to finding the perfect home for an assignment of contract is to locate sellers that are looking to get rid of their properties quickly. This might be a family who is looking to relocate for a job opportunity or someone who needs to make repairs on a home but can’t afford it. Either way, the quicker the wholesaler can close the deal, the better.

Once a property is located, wholesalers immediately go to work getting the details ironed out about how the sale will work. Transparency is key when it comes to wholesaling. This means that when a wholesaler intends to use an assignment of contract to transfer the rights to another person, they are always upfront about during the preliminary phases of the sale.

In addition to this practice just being good business, it makes sure the process goes as smoothly as possible later down the line. Wholesalers are clear in their intent and make sure buyers know that the contract could be transferred to another buyer before the closing date arrives.

After their offer is accepted and warranties are determined, wholesalers move to complete a title search . Title searches ensure that sellers have the right to enter into a purchase agreement on the property. They do this by searching for any outstanding tax payments, liens , or other roadblocks that could prevent the sale from going through.

Wholesalers also often work with experienced real estate lawyers who ensure that all of the legal paperwork is forthcoming and will stand up in court. Lawyers can also assist in the contract negotiation process if needed but often don’t come in until the final stages.

If the title search comes back clear and the real estate lawyer gives the green light, the wholesaler will immediately move to locate an entity to transfer the rights to buy.

One of the most attractive advantages of real estate wholesaling is that very little money is needed to get started. The process of finding a seller, negotiating a price, and performing a title search is an extremely cheap process that almost anyone can do.

On the other hand, it is not always a positive experience. It can be hard for wholesalers to find sellers who will agree to sell their homes for less than the market value. Even when they do, there is always a chance that the transferred buyer will back out of the sale, which leaves wholesalers obligated to either purchase the property themselves or scramble to find a new person to complete an assignment of contract with.

Learn more about assignment of contract in real estate by checking out this article .

Who Handles Assignment of Contract?

The best person to handle an assignment of contract is an attorney. Since these are detailed legal documents that deal with thousands of dollars, it is never a bad idea to have a professional on your side. If you need help with an assignment of contract or signing a business contract , post a project on ContractsCounsel. There, you can connect with attorneys who know everything there is to know about assignment of contract amendment and can walk you through the whole process.

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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 meaning in law and legal documents

In legal terms, "assignment" refers to the transfer of rights or property from one party to another.

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What does assignment mean in legal documents?

An assignment in legal terms refers to the transfer of rights or property from one party to another. This concept is fundamental in contract law and extends to various aspects of both personal and commercial law. When an individual or business entity assigns their rights, they enable the recipient, known as the assignee, to step into their shoes and receive the benefits of the contract or agreement. It is important to note that while rights can be assigned, the assignor's obligations under the contract cannot be transferred without the consent of the other contracting party.

The scope of an assignment can vary greatly depending on the context. It could involve something as simple as transferring a lease to another tenant or as complex as assigning the rights to royalties from a creative work. In real estate transactions, for example, an assignment may occur when a buyer transfers their interest in a property contract to another buyer before the original transaction is completed. In intellectual property, an inventor might assign patent rights to a company in exchange for royalties or a lump sum payment.

For an assignment to be effective, it generally must be in writing and include clear terms that delineate what is being transferred. Certain rights or types of property may require more formalized procedures; for instance, assignments of real estate interests typically must be recorded with the appropriate government office to put third parties on notice. Furthermore, some contracts contain prohibitions or restrictions on assignments, requiring the assignor to obtain permission from the other contracting party before making an assignment.

It's also crucial to distinguish between an assignment and other similar legal concepts. For instance, a novation is not merely an assignment of rights but a replacement of one of the parties to the contract with a new party, thereby creating a new contractual relationship. Unlike an assignment, a novation requires the consent of all parties involved. Additionally, while an assignment transfers rights or benefits, it does not inherently transfer the burden of obligations unless the other party to the original contract agrees to such a transfer.

Understanding assignments is essential for anyone entering into contractual agreements. An assignment clause can significantly impact the control a party has over their contractual rights and can affect how those rights can be utilized or capitalized upon in the future. When considering an assignment, it is advisable to consult with a legal professional to ensure that the rights are transferred in compliance with the law and that the assigning party understands the extent and implications of the transfer.

What are some examples of assignment in legal contracts?

Lease Agreement : "The lessee acknowledges the receipt of the assignment of the lease and agrees to be bound by its terms."
Intellectual Property License : "This license agreement includes an assignment of all intellectual property rights from the creator to the licensee."
Business Sale Agreement : "The seller shall provide an assignment of all contracts related to the business to the buyer at closing."
Employment Contract : "Employee hereby agrees to an assignment of any inventions created during the term of employment to the employer."
Loan Agreement : "Upon default of the loan, assignment of the collateral to the lender will be immediately effected."
Debt Assignment : "The creditor hereby gives notice of the assignment of the debt to an external collections agency."
Insurance Policy : "In the event of the policyholder's death, there will be an assignment of benefits to the designated beneficiary."
Mortgage Agreement : "The mortgage includes a clause that prohibits the assignment of the borrower's rights without the lender's consent."

The Law Dictionary

TheLaw.com Law Dictionary & Black's Law Dictionary 2nd Ed.

This refers to the transfer of property rights from one person to another person, the assignor transferring the property to the assignee.

Law Dictionary – Alternative Legal Definition

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 R. 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 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. Blight 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.

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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.

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Construction notes

Legal terms explained: assignment.

This post is part of the following categories:

Construction Law (Journal) , Legal Terms Explained

What is assignment?

An assignment is the transfer of an interest from one party (“ assignor ”) to another (“ assignee ”). Assignment allows the assignor to transfer the benefit of a contract to the assignee. For example, the tenant of recently built office premises may transfer the benefit of a collateral warranty originally granted in its favour to a subsequent tenant.

Without express words, assignment usually involves an assignment of accrued and future rights. Clear words are required to assign only future rights under a contract ( Energy Works (Hull) Ltd v MW High Tech Projects UK and others [2020] EWHC 2537 (TCC)).

Assignment in a construction context typically refers to a legal or equitable assignment (although assignment can also occur by other means, e.g. operation of law). A key difference between legal and equitable assignments is that, in the case of a legal assignment, the assignee may enforce any assigned rights in its own name. In contrast, following an equitable assignment, the assignee would need to join the assignor in any action brought to enforce its rights.

To take effect as a legal assignment under English law, an assignment must comply with section 136(1) of the Law of Property Act 1925 (“ LPA 1925 “). This requires the assignment to be: (i) in writing; (ii) absolute; and (iii) expressly notified in writing to the other party to the contract (“ debtor “). In practice, parties tend to effect a legal assignment by way of an assignment agreement or deed of assignment to ensure that these requirements are satisfied.

However, if the parties fail to meet any of the requirements set out in LPA 1925 the assignment will usually have equitable effect. Equitable assignments may arise orally or in writing, and whilst recommended, there is no need to notify the debtor, provided a clear intention to assign can be established. Neither legal nor equitable assignments generally require the debtor’s consent.

Assignment v novation

Although both terms are sometimes used interchangeably, assignment should be distinguished from novation. The most notable difference is that assignment only transfers the benefit of a contract (e.g. a warranty that works have been carried out to the required standard), whereas a novation transfers both the benefit and the burden (e.g. an obligation to pay for a service). As novation also requires the consent of all parties, it will typically be effected by a tripartite agreement between the novating party, the party to whom the contract is to be novated, and the counterparty to the relevant contract.

Some issues concerning assignment

Restrictions on assignment – Unless there is an express prohibition in the contract, the parties will usually be free to assign the benefit of a contract. However, many standard form building contracts, including the JCT Design and Build Contract, prohibit assignment, or allow it only subject to certain conditions. In this regard, a developer may seek to amend the contract to reduce any restrictions on their ability to assign. In contrast, a contractor may seek to limit any rights to assign, for example by specifying the number of permitted assignments. This is often linked to the contractor’s professional indemnity insurance terms which may provide for restricted cover in respect of successive assignments.
Ineffective assignment where prohibited – If a party purports to assign a right in contravention of an assignment clause, the assignment will only be effective as between the assignee and the assignor, and will not be enforceable against the debtor.
Means of assignment – A clause in a contract permitting assignment is not sufficient to effect an assignment. There must be a separate document or oral agreement to show the assignor’s intention to assign ( Allied Carpets Group Plc v Macfarlane (t/a Whicheloe Macfarlane Partnership) [2002] EWHC 1155 (TCC)).

* This is an updated version of an article originally published as part of the ‘Legal Terms Explained’ series of Construction Law .

For further information, please contact James Doe, David Nitek, Noe Minamikata or your usual Herbert Smith Freehills contact.

UK – Legal Terms Explained: Assignment.

April 18, 2023 by Rohin Pujari

What is assignment?

Assignment v novation

Some issues concerning assignment

Restrictions on assignment – Unless there is an express prohibition in the contract, the parties will usually be free to assign the benefit of a contract. However, many standard form building contracts, including the JCT Design and Build Contract, prohibit assignment, or allow it only subject to certain conditions. In this regard, a developer may seek to amend the contract to reduce any restrictions on their ability to assign. In contrast, a contractor may seek to limit any rights to assign, for example by specifying the number of permitted assignments. This is often linked to the contractor’s professional indemnity insurance terms which may provide for restricted cover in respect of successive assignments.
Ineffective assignment where prohibited – If a party purports to assign a right in contravention of an assignment clause, the assignment will only be effective as between the assignee and the assignor, and will not be enforceable against the debtor.
Means of assignment – A clause in a contract permitting assignment is not sufficient to effect an assignment. There must be a separate document or oral agreement to show the assignor’s intention to assign ( Allied Carpets Group Plc v Macfarlane (t/a Whicheloe Macfarlane Partnership) [2002] EWHC 1155 (TCC)).

* This is an updated version of an article originally published as part of the ‘Legal Terms Explained’ series of Construction Law .

For further information, please contact:

James Doe , Partner, Herbert Smith Freehills

[email protected]

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UK – New Rates And Limits For Employment Claims Come Into Effect On 6 April 2024.

Major Extension To Redundancy Protection For Employees In The UK.

Changes to the way the uk fundraising regulator reports on complaints data from charities..

CONVENTUS LAW

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Implementing Compensation

Employment Records to Use in the Compensation Cycle

You can specify the employment records used by the Start Workforce Compensation Cycle and Refresh Workforce Compensation Data processes when you configure plan details.

Primary Assignments

The processes include people and set their eligibility status according to only their primary assignments. Anyone who has multiple assignments and a plan that uses a manager hierarchy appears only on their primary assignment manager's worksheet.

All Assignments

The processes include people and set their eligibility status according to all of their assignments. Anyone who has multiple assignments might appear on their manager's worksheet more than once. And they might have different eligibility statuses. For example, they might have an Eligible status according to the primary assignment and an Ineligible status according to another assignment. If the manager for each assignment is different, the individual might appear on worksheets for multiple managers.

Employment Terms

The processes include people and set their eligibility status according to the employment terms of legal employers using the three-tier employment model. If the plan uses a manager hierarchy, people appear on the primary assignment manager's worksheet.

The processes exclude people whose legal employers have employment terms that use the two-tier employment model.

Any Assignment or Employment Term with a Salary

The processes include people and set their eligibility status for all of their assignments and employment terms that have a linked salary record. If the plan uses a manager hierarchy, people appear on the primary assignment manager's worksheet. Anyone who has multiple assignments with a salary record might appear on their manager's worksheet more than once. They could have a different base salary for each assignment. And they might have different eligibility statuses. For example, they might have an Eligible status according to the primary assignment and an Ineligible status according to another assignment. If the manager for each assignment is different, the individual might appear on worksheets for multiple managers, with different salaries for each.

The processes exclude people whose assignments and employment terms don't have a linked salary record.

Bureau of Alcohol, Tobacco, Firearms and Explosives

Search form, you are here, final rule: definition of “engaged in the business” as a dealer in firearms.

A firearm with a pen laying on an official application to own or manufacture a firearm.

On April 10 , 2024, the Attorney General signed ATF’s final rule, Definition of “Engaged in the Business” as a Dealer in Firearms, amending ATF’s regulations in title 27, Code of Federal Regulations (“CFR”), part 478. The final rule implements the provisions of the Bipartisan Safer Communities Act (“BSCA,” effective June 25, 2022), which broadened the definition of when a person is considered “engaged in the business” as a dealer in firearms (other than a gunsmith or pawnbroker). The Final Rule clarifies that definition. It will be published in the Federal Register and will be effective 30-days from publication.

This final rule incorporates BSCA’s definitions of “predominantly earn a profit” and “terrorism,” and amends the regulatory definitions of “engaged in the business as a dealer other than a gunsmith or pawnbroker” and “principal objective of livelihood and profit” to ensure each conforms with the BSCA’s statutory changes and can be relied upon by the public.

The final rule clarifies when a person is “engaged in the business” as a dealer in firearms at wholesale or retail by:

clarifying the definition of “dealer,” and defining the terms “purchase,” “sale,” and “something of value” as they apply to dealers;
adding definitions for the term “personal collection (or personal collection of firearms, or personal firearms collection),” and for “responsible person”;
setting forth conduct that is presumed to constitute “engaging in the business” of dealing in firearms, and presumed to demonstrate the intent to “predominantly earn a profit” from the sale or disposition of firearms, absent reliable evidence to the contrary, in civil and administrative proceedings;
clarifying that the intent to “predominantly earn a profit” does not require the person to have received pecuniary gain, and that intent does not have to be shown when a person purchases or sells a firearm for criminal or terrorism purposes;
clarifying the circumstances when a person would not be presumed to engaged in the business of dealing in firearms, including as an auctioneer, or when purchasing firearms for, and selling firearms from, a personal collection;
addressing the procedures former licensees, and responsible persons acting on behalf of such licensees, must follow when they liquidate business inventory upon revocation or other termination of their license; and
clarifying that licensees must follow the verification and recordkeeping procedures in 27 CFR 478.94 and Subpart H , rather than using an ATF Form 4473 when firearms are transferred to other licensees, including transfers by a licensed sole proprietor to that person’s personal collection.

Please note that this is the text of the final rule as signed by the Attorney General, but the official version of the final rule will be as it is published in the Federal Register. The rule will go into effect once it is published in the Federal Register.

Read a copy of the rule.

Related Resources

Overview of Final Rule 2022R-17F Definition of “Engaged in the Business” as a Dealer in Firearms (coming soon)
Final Rule 2022R-17F – Questions & Answers
Notice of Proposed Rulemaking – Definition of “Engaged in the Business”
Notice of Proposed Rule Making – Comments
Press Release: Justice Department Publishes New Rule To Update Definition of "Engaged in the Business" as a Firearms Dealer
Director Dettelbach’s Remarks on the “Engaged in the Business” Final Rule

Background Information

Bipartisan Safer Communities Act, Public Law 117-159 (June 25, 2022)
Gun Control Act of 1968
National Firearms Act
Rules and Regulation
Regulations.atf.gov

Contact Information

For questions regarding the application of the final rule , email the Firearms Industry Programs Branch .
For media inquiries, email ATF Public Affairs or call 202-648-8500 .
For congressional inquiries, email ATF Legislative Affairs or call 202-648-8510 .
For questions regarding the rulemaking process, email the Office of Regulatory Affairs .

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6 former Mississippi law officers sentenced in state court for torture of 2 Black men

B RANDON, Miss. (AP) — Already sentenced to many years in federal prison, six white former Mississippi law enforcement officers who pleaded guilty to a long list of state and federal charges for torturing two Black men were sentenced Wednesday in state court.

The state sentences did not add time to the federal prison terms the defendants had already received, but the victims’ supporters hailed the yearslong sentences, saying they took on unique importance in Mississippi, where local residents saw echoes of the state's history of racist atrocities by people in authority.

The six former officers who attacked Michael Corey Jenkins and Eddie Terrell Parker in January 2023 were sentenced last month to federal prison terms ranging from about 10 to 40 years. U.S. District Judge Tom Lee called their actions “egregious and despicable” as he gave sentences near the top of the federal guidelines to five of the six men.

Rankin County Circuit Judge Steve Ratcliff on Wednesday gave the men yearslong state sentences that were shorter than the amount of time in federal prison they had already received, but longer than what state prosecutors had recommended. Time served for the state convictions will run concurrently, or at the same time, as the federal sentences, and the men will serve their time in federal penitentiaries.

After the hearing, Malik Shabazz, an attorney representing Jenkins and Parker, celebrated that the former law officers were held accountable in the same courthouse where they had testified against people.

“They all had to come and appear in a courtroom where they have created much mischief,” Shabazz said. "In this courtroom and in this courthouse, they have been given credibility to their statements. But today was dramatically different. Today, the judge in this circuit county court has given out justice."

Shabazz had said the state criminal sentencing is important because “historically, the state of Mississippi has lagged behind or ignored racial crimes and police brutality against Blacks.” He applauded Ratcliff's decision to reject state prosecutors' recommendations for shorter sentences on the state charges.

Michelle Williams, a spokesperson for the Mississippi Attorney General's Office, said the sentences handed down Wednesday were consistent with the plea agreement reached with federal prosecutors.

In a written statement, Mississippi Attorney General Lynn Fitch said the former officers' crimes did grave harm to the victims and violated the trust of citizens they were supposed to protect.

“These criminal acts make a difficult job even harder and far more dangerous,” Fitch said. “And it is left to us all to commit ourselves to repairing that damage.”

The defendants include five former Rankin County sheriff’s deputies — Brett McAlpin, 53; Hunter Elward, 31; Christian Dedmon, 29; Jeffrey Middleton, 46; and Daniel Opdyke, 28 — and a former police officer from the city of Richland, Joshua Hartfield, 32, who was off duty during the assault.

All six of the former officers pleaded guilty to state charges of conspiracy to hinder prosecution. They were sentenced on multiple counts ranging from five to 20 years. Elward admitted to aggravated assault, and was sentenced to 20 years alongside punishments for burglary and conspiracy.

The charges followed an Associated Press investigation in March 2023 that linked some of the officers to at least four violent encounters since 2019 that left two Black men dead.

The terror began on Jan. 24, 2023, with a racist call for extrajudicial violence, according to federal prosecutors.

A white person phoned McAlpin and complained that two Black men were staying with a white woman at a house in Braxton, Mississippi. McAlpin told Dedmon, who texted a group of white deputies so willing to use excessive force they called themselves “The Goon Squad.”

Once inside, they handcuffed Jenkins and his friend Parker and poured milk, alcohol and chocolate syrup over their faces while mocking them with racial slurs. They forced them to strip naked and shower together to conceal the mess. They mocked the victims with racial slurs and assaulted them with sex objects.

In a mock execution gone awry, Elward shot Jenkins in the mouth, lacerating his tongue and breaking his jaw. The officers devised a coverup and agreed to plant drugs on Jenkins and Parker. False charges stood against the men for months.

McAlpin and Middleton, the oldest in the group, threatened to kill other officers if they spoke up, prosecutors said.

The only defendant who didn’t receive a federal prison term at the top of the sentencing guidelines was Hartfield, who did not work in a sheriff’s department with the others and was not a member of the “Goon Squad.”

In federal court, the deputies expressed remorse for their behavior and apologized to Jenkins and Parker. Several of their attorneys said their clients became ensnared in a culture of corruption that was encouraged by leaders in the sheriff’s office.

Rankin County Sheriff Bryan Bailey revealed no details about his deputies’ actions when he announced they had been fired last June. After they pleaded guilty in August, Bailey said the officers had gone rogue and promised changes. Jenkins and Parker have called for his resignation and filed a $400 million civil lawsuit against the department.

In statements read by their attorneys in court Wednesday, Jenkins and Parker said their ordeal had been ingrained in their bodies and minds.

“Your honor, they killed me. I just didn’t die,” Jenkins said.

Michael Goldberg is a corps member for the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow him at @mikergoldberg .

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Justice Department Publishes New Rule to Update Definition of “Engaged in the Business” as a Firearms Dealer

The Justice Department today announced it has submitted to the Federal Register the “Engaged in the Business” Final Rule, which makes clear the circumstances in which a person is “engaged in the business” of dealing in firearms and thus required to obtain a federal firearms license, in order to increase compliance with the federal background check requirement for firearm sales by federal firearms licensees.

“Under this regulation, it will not matter if guns are sold on the internet, at a gun show, or at a brick-and-mortar store: if you sell guns predominantly to earn a profit, you must be licensed, and you must conduct background checks,” said Attorney General Merrick B. Garland. “This regulation is a historic step in the Justice Department’s fight against gun violence. It will save lives.”

“The Bipartisan Safer Communities Act enhanced background checks and closed loopholes, including by redefining when a person is ‘engaged in the business’ of dealing in firearms. Today’s rule clarifying application of that definition will save lives by requiring all those in the business of selling guns to get a federal license and run background checks — thus keeping guns out of the hands of violent criminals,” said Deputy Attorney General Lisa Monaco. “I applaud the hard work of ATF in drafting this rule and reviewing the hundreds of thousands of public comments, which overwhelmingly favored the rule announced today. Because of that work, our communities will be safer.”

“This is about protecting the lives of innocent, law-abiding Americans as well as the rule of law. There is a large and growing black market of guns that are being sold by people who are in the business of dealing and are doing it without a license; and therefore, they are not running background checks the way the law requires. And it is fueling violence,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Today’s Final Rule is about ensuring compliance with an important area of the existing law where we all know, the data show, and we can clearly see that a whole group of folks are openly flouting that law. That leads to not just unfair but, in this case, dangerous consequences.”

The Bipartisan Safer Communities Act (BSCA), enacted June 25, 2022, expanded the definition of engaging in the business of firearms dealing to cover all persons who devote time, attention, and labor to dealing in firearms as a regular course of trade or business to predominately earn a profit through the repetitive purchase and sale of firearms. On March 14, 2023, President Biden issued Executive Order 14092, which, among other things, directs the Attorney General to develop and implement a plan to clarify the definition of who is engaged in the business of dealing in firearms and thus required to obtain a federal firearms license. The Final Rule conforms the ATF regulations to the new BSCA definition and further clarifies the conduct that presumptively requires a license under that revised definition, among other things.

Federally licensed firearms dealers are critical to federal, state, local, Tribal, and territorial law enforcement in our shared goal of promoting public safety. Licensees submit background checks on potential purchasers to the FBI’s National Instant Criminal Background Check System, which helps to keep firearms out of the hands of prohibited persons. Further, licensees keep records of sales transactions to help ensure that when a gun is used in a crime and recovered by law enforcement it can be traced back to the first retail purchaser; they help identify and prevent straw purchasers from buying firearms on behalf of prohibited persons and criminals; and they facilitate safe storage of firearms by providing child-safety locks with every transferred handgun and offer customers other secure gun storage options. Unlicensed dealing, however, undermines these public-safety features — which is why Congress has long prohibited engaging in the business of dealing in firearms without the required license.

To increase compliance with the statutes Congress has enacted, the Final Rule identifies conduct that is presumed to require a federal firearms license. And, in addition to implementing the revised statutory definition discussed above, the Final Rule clarifies the circumstances in which a license is — or is not — required by, among other things, adding a definition of “personal firearms collection” to ensure that genuine hobbyists and collectors may enhance or liquidate their collections without fear of violating the law. The Final Rule also provides clarity as to what licensees must do with their inventory when they go out of business.

The Final Rule goes into effect 30 days after the date of publication in the Federal Register.

On Sept. 8, 2023, the Justice Department published a notice of proposed rulemaking , and during the 90-day open comment period, ATF received nearly 388,000 comments.

The final rule, as submitted to the Federal Register, can be viewed here .

Please note: This is the text of the Engaged in the Business Final Rule as signed by the Attorney General, but the official version of the Final Rule will be as it is published in the Federal Register.

Learn more about the rulemaking process here .

Harris to give prediction of ‘what a second Trump term looks like’ during Arizona campaign stop

The biden campaign is ramping up attacks on former president trump, blaming him for abortion bans after roe v. wade was overturned.

Trump says Arizona abortion ruling goes too far

Fox News correspondent Mark Meredith reports on former President Trump’s stance on abortion on ‘Special Report.’

Vice President Kamala Harris will tell a dark story about what a possible second Trump term would look like when she visits Arizona on Friday afternoon.

Harris will hold a campaign event in Tuscon days after the state Supreme Court upheld an 1864 law that criminalizes abortions with no exceptions for rape or incest. In prepared remarks, Harris blames former President Trump for making that decision possible with his appointments to the U.S. Supreme Court, which overturned Roe v. Wade in 2022, ending federal protections for abortion.

"Here in Arizona, they have turned the clock back more than a century on women’s rights and freedoms. The overturning of Roe was a seismic event. And this ban in Arizona is one of the biggest aftershocks yet," Harris will say, according to excerpts released by the Biden campaign.

She will call Trump "the architect of this health care crisis" and make the case that a second Trump term would mean "more bans, more suffering, less freedom."

ARIZONA GOVERNOR RIPS GOP HYPOCRISY AFTER STATE SUPREME COURT UPHOLDS ABORTION BAN

Kamala Harris campaigns in South Carolina on the eve of the state's Democratic presidential primary

Vice President Kamala Harris speaks at a campaign rally, Friday, Feb. 2, 2024, in Orangeburg, S.C. Harris will campaign in Arizona on Friday and declare former President Trump responsible for laws that ban abortion. (AP Photo/Meg Kinnard)

"And as much harm as he has already caused, a second Trump term would be even worse. If Donald Trump gets the chance, he will sign a national abortion ban. How do we know? Look at his record. Congress tried to pass a national abortion ban before, in 2017, and then-President Trump endorsed it."

The Arizona Supreme Court delivered a 4-2 ruling Tuesday that said the 1864 law — passed when Arizona was a territory and codified in 1913 when it became a state — is "now enforceable" after the U.S. Supreme Court overturned Roe v. Wade in 2022.

ARIZONA SUPREME COURT UPHOLDS NEAR-TOTAL ABORTION BAN

Arizona Gov. Katie Hobbs gives a brief speech prior to President Joe Biden's remarks at the Tempe Center for the Arts on September 28, 2023, in Tempe, Arizona. Hobbs has called on state lawmakers to overturn an 1864 law, now enforceable after Roe v. Wade was overturned, which banned nearly all abortions. (Rebecca Noble/Getty Images)

The state court rejected arguments that a 15-week abortion ban passed in 2022 should be enforced instead, finding that the more recent law "does not create a right to, or otherwise provide independent statutory authority for, an abortion that repeals or restricts" the 1913 law.

The Civil War-era law makes it a felony for anyone who "provides, supplies or administers to a pregnant woman, or procures such woman to take any medicine, drugs or substance, or uses or employs any instrument or other means whatever, with intent thereby to procure the miscarriage of such woman, unless it is necessary to save her life," potentially carrying a prison sentence between 2 and 5 years.

TRUMP SAYS ARIZONA PRO-LIFE LAW WENT ‘TOO FAR’ AS BIDEN CAMP CLAIMS POLICY U-TURN

Protesters march around the Arizona Capitol in Phoenix after the Supreme Court decision to overturn Roe v. Wade, Friday, June 24, 2022. (AP Photo/Ross D. Franklin)

Arizona Gov. Katie Hobbs (D) has urged state lawmakers to swiftly repeal the law and the state's Democratic attorney general has said she will not enforce any abortion bans.

Harris' prepared remarks reflect the Democratic Party's 2024 strategy of going all-out on abortion following the end of Roe.

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The Biden campaign this week announced a seven-figure ad purchase targeting Arizona voters with a focus on abortion rights. A new ad, called "Power Back," will air on TV stations in Arizona and call Trump responsible for overturning Roe v. Wade and allowing abortion bans like Arizona's to move forward.

Fox News Digital's Jamie Joseph contributed to this report.

Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.

Chris Pandolfo is a writer for Fox News Digital. Send tips to [email protected] and follow him on Twitter @ChrisCPandolfo.

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assignment
Assignment is a legal term whereby an individual, the "assignor," transfers rights, property, or other benefits to another known as the " assignee .". This concept is used in both contract and property law. The term can refer to either the act of transfer or the rights /property/benefits being transferred.
ASSIGNMENT Definition & Meaning
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 ...
Assignment (law)
Assignment (law) Assignment [1] is a legal term used in the context of the laws of contract and of property. In both instances, assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee. [2] An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee.
Assignment Legal Definition: Everything You Need to Know
All parties must be legally capable. The objects being transferred must be legal. Consideration should be included. All parties must consent to the assignment. One of the most common forms of assignment is a wage assignment. For instance, if you owe child support, alimony, back taxes, or some other form of debt, the court can require your ...
Legal Assignment: Everything You Need to Know
A legal assignment occurs when: 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 ...
Assignments: The Basic Law
Ordinarily, the term assignment is limited to the transfer of rights that are intangible, like contractual rights and rights connected with property. Merchants Service Co. v. Small Claims Court, 35 Cal. 2d 109, 113-114 (Cal. 1950). An assignment will generally be permitted under the law unless there is an express prohibition against assignment ...
What is an Assignment? Legal Definition
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".
Assignees of a Claim
An assignment of a legal claim occurs when one party (the "assignor" ) transfers its rights in a cause of action to another party (the "assignee" ). 1. The Supreme Court has held that a private litigant may have standing to sue to redress an injury to another party when the injured party has assigned at least a portion of its claim for ...
Legal Definition of Assignment: The Transfer of Property from One
An assignment, in legal terms, is the act of transferring the rights, interests, or benefits of a property or contract from one party (the assignor) to another party (the assignee). This transfer can occur for various reasons, such as the need to delegate responsibilities, fulfill contractual obligations, or facilitate business transactions.
Assignment
term: Assignment assignment n 1: the act of assigning 2 a: a position, post, or office to which one is assigned b: a task assigned 3: a present transfer of property or rights absolute assignment: an assignment in which the transfer is complete and leaves the assignor with no interest in the property or right transferred assignment for the benefit of creditors
Assignment legal definition of assignment
assignment: 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 ...
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Learn about the legal definition of assign and how it applies to business and contract agreements. Discover examples of assignments and their importance in ensuring continuity and efficiency. Gain insights into how assignments can benefit both parties involved and why understanding this concept is crucial for business owners and individuals in contractual agreements
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Assignment Law. In legal terms, the meaning of an assignment is a contractual obligation to transfer a property title or right from one party to another. Generally, the assignment is transferred based on an entire interest in the property, chattel, estate, or other item assigned. A grant is different from an assignment in that an assignment ...
Assignment of Contract: What Is It? How It Works
An assignment of contract is a legal term that describes the process that occurs when the original party (assignor) transfers their rights and obligations under their contract to a third party (assignee). When an assignment of contract happens, the original party is relieved of their contractual duties, and their role is replaced by the ...
Assignor
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 ...
Assignment meaning in law and legal documents
What does assignment mean in legal documents? An assignment in legal terms refers to the transfer of rights or property from one party to another. This concept is fundamental in contract law and extends to various aspects of both personal and commercial law. When an individual or business entity assigns their rights, they enable the recipient ...
Definition of ASSIGNMENT • Law Dictionary • TheLaw.com
This refers to the transfer of property rights from one person to another person, the assignor transferring the property to the assignee. Law Dictionary - Alternative Legal Definition 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 …
Assignment (law) legal definition of Assignment (law)
assignation. in Scots law, the mode of transferring ownership of incorporeal property. The grantor is known as the cedent and the person to whom the property is assigned is the assignee or cessionary. No form is required, but one is provided in the Transmission of Moveable Property (Scotland) Act 1862. The general rule in Scotland is that ...
Assignments legal definition of assignments
1 the transfer of property, especially terms of leases, CHATTELS personal and CHOSE IN ACTION.Assignments may be legal or equitable. Legal assignments of terms of years must be by deed (even where the creation of the right assigned did not require a deed, as, for example, in the case of a lease of not more than three years); equitable assignments need not be by deed but must usually be in writing.
Legal Terms Explained: Assignment
To take effect as a legal assignment under English law, an assignment must comply with section 136(1) of the Law of Property Act 1925 ... Assignment v novation. Although both terms are sometimes used interchangeably, assignment should be distinguished from novation. The most notable difference is that assignment only transfers the benefit of a ...
UK
An assignment is the transfer of an interest from one party (" assignor ") to another (" assignee "). Assignment allows the assignor to transfer the benefit of a contract to the assignee. For example, the tenant of recently built office premises may transfer the benefit of a collateral warranty originally granted in its favour to a ...
Employment Records to Use in the Compensation Cycle
The processes exclude people whose legal employers have employment terms that use the two-tier employment model. Any Assignment or Employment Term with a Salary. The processes include people and set their eligibility status for all of their assignments and employment terms that have a linked salary record. If the plan uses a manager hierarchy ...
Final Rule: Definition of "Engaged in the Business" as a Dealer in
On April 10, 2024, the Attorney General signed ATF's final rule, Definition of "Engaged in the Business" as a Dealer in Firearms, amending ATF's regulations in title 27, Code of Federal Regulations ("CFR"), part 478. The final rule implements the provisions of the Bipartisan Safer Communities Act ("BSCA," effective June 25, 2022), which broadened the definition of when a
PDF Family Law Trial and Long Cause Evidentiary Hearing Assignment Calendar
FAMILY LAW TRIAL AND LONG CAUSE EVIDENTIARY HEARING . ASSIGNMENT CALENDAR (also known as Trial Assignment "T.A.") 04-12-24, 8:30 a.m., Dept. 43 . The following are the Family Law Trial and Long Cause Evidentiary Hearing dates available as of the date listed above. Parties may agree to a date set forth below for a long cause evidentiary ...
Explainer: US limits on PFAS in drinking water could fuel litigation
The U.S. Environmental Protection Agency has finalized the first federal regulations on toxic "forever chemicals" in drinking water, setting tight limits that essentially require public water ...
Majority of women in states that banned abortion want legal access
An image of a chain link. It symobilizes a website link url. Copy Link A majority of women living in states that have banned abortion want legal access to the procedure, a new survey shows. An ...
6 former Mississippi law officers sentenced in state court for ...
BRANDON, Miss. (AP) — Already sentenced to many years in federal prison, six white former Mississippi law enforcement officers who pleaded guilty to a long list of state and federal charges for ...
Justice Department Publishes New Rule to Update Definition of "Engaged
The Justice Department today announced it has submitted to the Federal Register the "Engaged in the Business" Final Rule, which makes clear the circumstances in which a person is "engaged in the business" of dealing in firearms and thus required to obtain a federal firearms license, in order to increase compliance with the federal background check requirement for firearm sales by ...
Harris to give prediction of 'what a second Trump term looks like
The Arizona Supreme Court delivered a 4-2 ruling Tuesday that said the 1864 law — passed when Arizona was a territory and codified in 1913 when it became a state — is "now enforceable" after ...

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