Assignable contract

Assignable contract,

Definition of Assignable contract:

  1. Most often, assignable contracts are found in futures contracts. Also, most of the derivative contracts that trade on an exchange are not assignable. There are also assignable contracts in the real estate market that allow the transfer of property.

  2. Contract which includes a clause that allows owner to give the rights and obligations to a new owner, who will also receive any benefits under the contract before it closes. Most exchange traded contracts are not assignable.

  3. An assignable contract is a derivative contract that has a provision allowing the holder to give away the obligations and rights of the contract to another party or person before the contract's expiration date. The assignee would be entitled to take delivery of the underlying asset and receive all of the benefits of that contract before its expiry. However, the assignee must also fulfill any obligations or requirements of the contract.

How to use Assignable contract in a sentence?

  1. The assignee would be entitled to take delivery of the underlying asset and receive all of the benefits of that contract before its expiry.
  2. An assignable contract has a provision allowing the holder to give away the obligations and rights of the contract to another party or person before the contract's expiration date.
  3. An assignment agreement can allow a bank or a mortgage company to sell or assign an outstanding mortgage loan.

Meaning of Assignable contract & Assignable contract Definition