Kiritsis & Associates


Who is an assignee? Kiritsis Law Group 212 922 0005

May 13, 2021

By: John Kiritsis, Esq., CPA, MBA, MS, JD, LL.M

Generally, it refers to the person who upon a transfer by an assignment of a contract, receives the right to by property. The liability exposure of the assignee depends on many factors, such as laws of the specific jurisdiction, local legal customs, and the contract terms of the contract when the assignment took place. A common source of confusion when discussing assignees, is the failure to differentiate between an assignment and a delegation. An assignment essentially transfers all of the assignor’s rights on the property to the assignee. In contrast, in a delegation, the ‘buyer” merely appoints someone with the goal of fulfilling certain duties. Similarly, to assignments, there are delegations (i.e. the delegated services are specialized and unique, and thus practically impossible to successfully delegate). A common source of disputes arises due to the fact, that an assignment may not always shield the assignor from liability; this phenomenon can often arise from the original contract, making the assignor provide a personal guarantee, despite the assignor – assignee agreement. It is important for parties to review what they are signing. If an assignment clause is in place, then the options regarding consent should appear.


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