Legal Definitions - absolute assignee

An absolute assignee is an individual or entity who receives a complete and unconditional transfer of all rights, interests, and ownership of a particular asset, contract, or legal claim from another party (the assignor). This means the assignor gives up all their claims and control over the assigned item, and the absolute assignee becomes the sole and full owner of those rights, without any conditions or remaining interests held by the original owner.

• Example 1: Copyright Transfer

  Imagine a freelance author who writes a novel and then sells all the publishing rights, including copyright, to a major publishing house. The contract explicitly states that the author transfers all intellectual property rights to the publisher upon signing and payment.

  In this scenario, the publishing house becomes the absolute assignee of the novel's copyright. The author no longer holds any ownership rights to the book and cannot sell it to another publisher, create derivative works without the publisher's permission, or claim royalties beyond what was agreed upon in the initial sale. The transfer of rights is complete and unconditional.

• Example 2: Loan Portfolio Sale

  A smaller regional bank decides to exit the mortgage lending business and sells its entire portfolio of existing home loans to a larger national bank. The agreement specifies that all rights to collect payments, enforce loan terms, and pursue any defaulting borrowers are transferred entirely and irrevocably to the national bank.

  The larger national bank is the absolute assignee of these mortgage loans. The original regional bank completely relinquishes its rights and responsibilities related to these specific loans. Homeowners will now make their mortgage payments to the national bank, which has full legal authority over the loans, including the power to foreclose if necessary.

• Example 3: Insurance Policy Ownership

  A parent purchases a life insurance policy and, years later, decides to irrevocably assign all ownership rights and future benefits of the policy to their adult child. This means the child will be the sole owner and beneficiary, and the parent cannot later change the beneficiary or surrender the policy for its cash value.

  The adult child becomes the absolute assignee of the life insurance policy. The parent has completely transferred all their rights, including the ability to make changes or claim benefits, to the child. The transfer is final and unconditional, making the child the full legal owner of the policy's benefits and control.