What does "assignment" refer to in leasing?

In leasing terminology, "assignment" specifically pertains to the transfer of lease rights from one party to another. This concept is crucial in leasing agreements as it allows an existing lessee (the tenant) to transfer their rights and obligations under the lease to another party. This transfer can happen without the lease needing to be terminated, enabling continuity of usage for the asset while shifting the responsibility for lease payments and obligations to a new party.

When a lease is assigned, the original lessee typically remains liable unless the lease agreement states otherwise or the lessor (the leasing company) releases them from liability. This mechanism is particularly useful for lessees who may no longer require the leased asset or want to exit their lease agreement early without facing penalties or terminating the lease outright.

The other options do not accurately capture the definition of "assignment" in this context. The leasing of an asset directly relates to the original agreement but does not reflect the transfer of rights. Creating a new lease agreement involves establishing a separate contract rather than transferring existing rights. The termination of an existing lease agreement implies an end to the obligations and rights under that agreement rather than a reassignment of those rights.