What is required for Assignment of Rights in a K?

• A. Consideration is required; present transfer is not
• B. A language of present transfer is required; consideration is not required
• C. Oral assignments are always sufficient
• D. The assignment must be in writing signed by the obligee

Answer: (B)

Assignment of rights under a contract is a transfer of those rights from the person who holds them to someone else. The key requirement is that the transfer is a present one—the rights are assigned now, not merely promised to be assigned later. Importantly, you don’t need consideration to make an assignment effective; rights can be transferred gratuitously as long as the language shows a present transfer of the right.

That’s why the statement about a present-transfer language being required is the best pick: it captures the essential element that the assignment operates now. The idea that consideration is required is incorrect, since an assignment can be made without it. Oral assignments aren’t universally sufficient—there are situations where writing is required by law or by the terms of the contract. And the requirement isn’t that the obligee sign the assignment; typically it’s the assignor who signs to effect the transfer, with notice to the obligor.