Equitable Assignment Law and Legal Definition

An equitable assignment is such an assignment as gives an assignee a title which, though not cognizable at law, is recognized and protected in equity. It is in the nature of a declaration of trust, and is based on principles of natural justice and essential fairness, without regard to form. No particular form is necessary to constitute an equitable assignment, and any words or transactions which show an intention on the one side to assign and an intention on the other to receive, if there is a valuable consideration, operates as an effective equitable assignment. The true test of an equitable assignment is said to be whether a debtor would be justified in paying the debt to the person claiming to be the assignee. [Player v. Player, 240 S.C. 274 (S.C. 1962)].