A letter of assignment is a document in which the writer assigns a specific portion of his or her rights to the recipient of the letter. This is most commonly used in the area of business bankruptcy and insolvency, when a business owner starts assigning some of his assets to a trustee for the purpose of sale. But, this letter can also be used to assign other specific rights an individual might have to another person, including the right to collect payment from someone, of the right to act on behalf of the writer in a specific situation.
Tips for writing letter of assignment
- Be 100% clear in what rights you are assigning, and for what duration of time – ambiguous language or general terms here can cause some big problems with the agreement
Sample letter of assignment
1239 Mercer Street
Downsville, WI 54735
Dear Hopgood Liquidations
This letter is to hereby certify that on July 14th, 2009, you are to take possession of three (3) Ford Econoline transportation vans from our business, Greenbelt Couriers, for the purpose of liquidation. We certify that all the proceeds from the sale of these 3 vans, minus administrative feels, will be used to pay off the debt to the Royal Bank of Canada, loan #654232