What is Assignment by Delivery? A Comprehensive Legal Overview

Q: Do I need a lawyer for assignment by delivery?

While you can manage simple assignments yourself, consulting a lawyer is advisable for complex situations.

Q: Can verbal agreements be used for assignment by delivery?

While verbal agreements may be recognized in some cases, physical delivery of evidence is typically required for a valid assignment.

Definition & Meaning

Assignment by delivery refers to the process of transferring ownership of a legal right or claim (known as a chose in action) by physically handing over the evidence or symbol of that ownership to another person, called the assignee. This transfer allows the assignee to not only claim the right but also to take legal action if necessary. For example, when a commercial paper that is payable to the bearer is transferred through delivery, the new holder gains both ownership rights and the ability to enforce those rights in court.

Table of content

Legal Use & context

Assignment by delivery is commonly used in various legal contexts, particularly in contract law and commercial transactions. It plays a significant role in the transfer of rights related to debts, securities, and other financial instruments. Users can manage these transactions independently using legal templates available through services like US Legal Forms, which provide guidance on the necessary procedures and documentation.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A lender hands over a promissory note to a new borrower, signifying that the new borrower now holds the right to collect the debt.

Example 2: A stockholder physically delivers a stock certificate to another person, transferring ownership of the shares to them. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State	Key Differences
California	Requires written documentation for certain types of assignments.
New York	Allows oral assignments in specific cases, but written is preferred.
Texas	Strictly enforces delivery as a requirement for assignment validity.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term	Definition	Key Differences
Assignment by Delivery	Transfer of ownership through physical delivery of evidence.	Focuses on physical transfer; rights transfer upon delivery.
Assignment by Written Instrument	Transfer of rights documented in a written agreement.	Requires formal documentation; does not always involve physical delivery.

Common misunderstandings

What to do if this term applies to you

If you are involved in a situation requiring assignment by delivery, ensure you have the necessary documentation and evidence of ownership. Consider using templates from US Legal Forms to help you create the appropriate paperwork. If the situation is complex or involves significant rights, consulting a legal professional may be beneficial.

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Quick facts

Typical fees: Varies based on the type of assignment and state.
Jurisdiction: Applicable in all states, but specifics may vary.
Possible penalties: May include legal disputes if not executed properly.

Key takeaways

Frequently asked questions

What is a chose in action?

A chose in action is a legal right to enforce a claim or right, such as a debt or a right to sue.