What is the process of transferring rights from one party to a third party known as?

The process of transferring rights from one party to a third party is known as assignment. In contractual terms, assignment refers to the mechanism by which one party (the assignor) transfers their rights and benefits under a contract to another party (the assignee). This is a common practice in commercial contracts, allowing for flexibility and the ability to transfer interests without needing to renegotiate the entire contract.

When a right is assigned, the assignee typically gains the same rights that the assignor had, allowing them to enforce those rights against the original counterparty. This aspect of assignment is crucial because it ensures that the underlying obligations of the contract remain intact while changing who benefits from those rights.

In a contractual setting, assignments can be important for various reasons, such as the sale of receivables, transferring rights in intellectual property, or even in the context of financing arrangements. Understanding assignment is essential for commercial contracts managers as it affects how agreements are executed and who holds certain rights and obligations.

Other terms listed, while related to contract management, have different meanings. For instance, subrogation is primarily a legal term used in insurance law to describe the right of one party to step into the shoes of another party to claim indemnity from a third party. Deleg