Assignment of rights

An assignment of rights is the transfer of a contractual or other legal right, such as the right to receive payment, from one party to another. Only rights, meaning the benefits of a contract, can be assigned on their own. Obligations cannot be transferred without the consent of the person to whom they are owed, which is done through a novation.

How BC law treats it

A legal (statutory) assignment of a debt or other chose in action must be absolute, in writing signed by the assignor, with written notice to the debtor (Law and Equity Act, RSBC 1996, c 253, s. 36). An equitable assignment needs no particular form, but the assignee may need to join the assignor in any lawsuit.

What it means for your business

Businesses often assign receivables or contract rights in financing or sale transactions, and should give written notice to the paying party so that payments are redirected.

Risks and common mistakes

If the debtor is not notified, it can validly keep paying the original creditor, leaving the assignee to chase the assignor.

For the full explanation, see our entry on Assignment of contract.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.