Assignable Contract

Assignable Contract

A futures contract that the holder may assign to another party. That is, the holder may give or sell the assignable contract to a third party, allowing this party to take on all rights and obligations associated with the contract. One may do this and still profit from the investment if the underlying asset has appreciated. This is a relatively unusual provision; most futures traded on exchanges are not assignable contracts.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
To provide an effective guarantee to the counterparty in a freely assignable contract, as we have seen, Patriot would not only need to promise that it remains residually liable on the contract, but Patriot would also need to make a credible promise to retain enough assets to make good on the counterparty's claim if the assignee breaches.
Nevertheless, we do find evidence that bundles are sometimes defined in a way that would not require entities: 36.5% of the bundled assignable contracts in our sample include at least one definition of a bundle that does not use an entity, and 6.1% of these contracts use only non-entity-based definitions of bundles.
Suppose first that contracts are assignable, and suppose that contract prices under assignable contracts are the same as above.
Buyer #1 enters into an assignable contract with the seller at an inflated price.