Which type of contract involves the transfer of legal rights rather than legal duties?

A contract that involves the transfer of legal rights rather than legal duties is an assignment contract. In an assignment contract, one party transfers their rights and benefits under the original contract to another party. This means that the assignee now has the right to enforce the terms of the original contract, thus legally stepping into the shoes of the assignor concerning those rights.

Assignment contracts are essential in various business contexts, especially when parties want to reallocate benefits without altering the obligations that remain. For instance, a contractor might assign their rights to receive payment to a subcontractor, allowing the subcontractor to collect payment directly. However, the original obligations under the contract remain unchanged; it is solely the rights that are transferred.

In contrast, a master service agreement primarily outlines the overall terms for ongoing services between parties but does not inherently focus on the transfer of rights. A warranty contract guarantees certain features or performance of goods or services but is also more about obligations rather than merely transferring rights. A lease agreement involves the granting of usage rights of the property from the lessor to the lessee but still entails obligations on both sides, such as payment and maintenance. Therefore, an assignment contract distinctly emphasizes the transfer of rights, making it the correct choice in this context.