Which term refers to both the process of creating and transferring rights in a contract?

The term that refers to both the process of creating and transferring rights in a contract is "assignment." In a contractual context, assignment specifically involves one party (the assignor) transferring their rights to receive benefits or enforce obligations under the contract to another party (the assignee). This process can occur with various types of contracts and allows the assignee to step into the shoes of the assignor, thereby gaining the rights to the contractual benefits.

The power of assignment is a key principle in contract law because it facilitates the transfer of rights without necessarily altering the contractual obligations of the original parties involved. The assignor usually remains liable for any obligations under the contract unless the assignee is also given an explicit release from those obligations.

Understanding this concept is essential as it highlights how contractual rights can be effectively managed and transferred, impacting agreements in various fields, including business, real estate, and services.