Assignment of a contract means what?

Assignment of a contract means what?

• A. When a third person takes the place of one of the original people in the contract and then all the rights and responsibilities become his.
• B. Is a change in the original terms, such as extending time for closing.
• C. The contract is terminated by mutual agreement.
• D. The contract is void.

Answer: (A)

Assignment means a third party steps into the shoes of one of the original parties in a contract, and all the rights to benefit from the contract and the duties to perform under it pass to that new person. In a real estate context, this lets someone transfer their interest in a purchase agreement to another buyer, who then can enforce the contract and carry out the agreed obligations. However, whether the original party is fully released from liability can depend on the agreement and whether a release (or novation) is arranged. The other options describe different concepts: changing terms is a modification of the contract, not an assignment; termination by mutual agreement is rescission; and voiding the contract means it’s invalid from the start.

Assignment means a third party steps into the shoes of one of the original parties in a contract, and all the rights to benefit from the contract and the duties to perform under it pass to that new person. In a real estate context, this lets someone transfer their interest in a purchase agreement to another buyer, who then can enforce the contract and carry out the agreed obligations. However, whether the original party is fully released from liability can depend on the agreement and whether a release (or novation) is arranged.

The other options describe different concepts: changing terms is a modification of the contract, not an assignment; termination by mutual agreement is rescission; and voiding the contract means it’s invalid from the start.