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An assignment is a legal term used in the context of the law of contract and of property. The ability to assign a contract to another party is a fairly common practice in contracts law.Indeed, in some states, at common law, a clause specifically prohibiting assignment will fail. An assignment of contract is a legal term that describes the process when a contract assignee wishes to transfer their contractual obligations to another. The transfer of a right from one party to another. Many contracts will provide for a prohibition to assign the rights and obligations under the agreement – so-called assignment clauses. There may be situations where one party wishes to leave a contract and transfer their role to a new, incoming party.