Virtual Exchange (VE) is typically set up in an institutional context, which implies the need to verify student learning through assessment. The difficulties in designing and implementing assessment in VE arise principally from the complexity of VE itself, as well as from a combination of institutional and sociocultural factors. This chapter aims to discuss the main tenets that need to be considered when designing assessment in VE on tertiary level. In particular, the importance of defining the construct and selecting appropriate content in safeguarding the validity of assessment is highlighted. The chapter also discusses the interplay between the purposes and the consequences of assessment in VE, and the form of assessment. All of these features are interconnected and often need to compromise formative and summative functions in order to comply with the institutional requirements. Next, the constructive alignment between the course objective, learning tasks, and assessment is addressed. The chapter concludes with the discussion of the sociocultural factors that require particular consideration in pedagogical initiatives involving participants from two or more distinctive educational contexts. [For the complete volume, "Assessing Virtual Exchange in Foreign Language Courses at Tertiary Level," see ED624433.]