There are many different restrictions on assignments.
The ability to assign a contract to another party is a fairly common practice in contracts law. Yellow is the assignee, since he now possesses the rights and obligations of the contract with Blue.
This type of assignment is common in a wide variety of different contract situations. Yellow is now obligated to provide Blue with the St.
In our second scenario, when Pink assigns only his rights under the contract, Blue becomes the obligor. An obligor is a party that is obligated to do something under the terms of a contract.
You will sometimes hear the term 'obligor' used to describe a 'borrower' or a 'debtor.' This is common because many contracts are debt contracts, but it's important to note that obligors can be required to do something other than repay debt.
In this scenario, Pink is the assignor, since he was the original party to the contract with Blue. Otherwise, as we have in our scenario, the assignment is an exchange.
Yellow is the assignee, since he now possesses the benefit of the contract with Blue. Yellow previously did work for Pink, so Pink will have Yellow paid for that work. This means that the assignor can change his mind and take back the rights.
Obligors can be obligated to perform a particular task or even to refrain from a particular activity. Yellow is our obligee because the assignment was made to profit Yellow, even though Yellow isn't considered to be a third party beneficiary.
Whenever we have an assignment and an obligor, we'll have an obligee. Yellow isn't a third party beneficiary because the original contract wasn't written in order to benefit Yellow.
This means that the party gives the obligations and benefits of an existing contract to another party. This means that Pink assigns Yellow both the obligations and the benefits under his contract with Blue.
This situation occurs when a party to a contract wants another party to completely step in and fulfill the contract. In this scenario, Pink is the assignor, since he was the original party to the contract with Blue.