Jurisdiction(s):
United Kingdom

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Key definition

Assignment definition

What does Assignment mean? In legal practice, an assignment is the transfer of an existing right (for example a debt, contractual right, receivable or intellectual property) from the assignor to the assignee. It may arise by agreement or by operation of law (such as insolvency or succession). The concept is descriptive and applied across contexts; in England and Wales it is framed by case law and statute. In England and Wales, a legal assignment of a debt or other legal chose in action requires compliance with section 136 Law of Property Act 1925 (typically: in writing, absolute and of the whole, with notice to the...

Assignment of collateral warranties: legal framework, drafting limits, assignee recovery, and standard forms (JCT, CIC, ACE) - England and Wales

Published by a LexisNexis Construction expert

Practice notes

This Practice Note centres on the Assignment of Collateral warranties (see Practice Note: What are collateral warranties?). For wider guidance on assignment generally, refer to Practice Notes: Assignment in construction contracts and Legal and equitable assignment in construction contracts. Although this Practice Note discusses collateral warranties, the same principles apply where third party rights are used instead; see Contracts (Rights of Third Parties) Act 1999 in construction—overview.

Assignment provisions in collateral warranties

The default position is that, if a contract says nothing about assignment, the benefit of that contract can be assigned without limit and without any need for consent, as allowed by section 136(1) of the Law of Property Act 1925 (LPA 1925); there is no requirement to obtain the obligor’s approval to any intended assignment. See Practice Note: Restrictions on the assignment of rights in construction contracts.

In practice, most construction agreements include express assignment clauses to set out the parties’ respective rights on assignment, and this is usually mirrored in collateral warranties...

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Web page updated on 21/05/2026

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