Future Business Leaders of America (FBLA) Business Law Practice Exam

What is the legal term for the transfer of a right under contract?

1. Assignment

2. Negotiation

3. Delegation

4. Amendment

The correct answer is: Assignment

The legal term for the transfer of a right under contract is "assignment." In contractual terms, an assignment occurs when one party, known as the assignor, transfers their rights and benefits under a contract to another party, known as the assignee. This is a common practice in various transactions, allowing rights to be passed along without necessarily altering the initial contract terms. For example, if an individual has the right to receive payment for services rendered, they can assign that right to another person, who will then collect the payment. The original contract remains in effect, but the right to receive the payment is now held by the assignee. The other terms presented, such as negotiation, delegation, and amendment, refer to different concepts in contract law. Negotiation generally involves discussions leading to an agreement, delegation refers to the transfer of duties or responsibilities, and amendment refers to changes made to the terms of an existing contract. Thus, assignment is the most accurate term for the scenario described.