In a Delaware real estate contract, an assignment:
Correct Answer
C) Transfers the assignor's contractual rights to a third party
Assignment transfers contractual rights to a third party. In Delaware, contract rights are generally assignable unless the contract expressly prohibits it. However, unlike a novation, an assignment does not automatically release the original assignor from liability — the assignor typically remains liable for performance unless the other party expressly agrees to release them through a novation. No Commission approval is required for a valid assignment.
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Related Topics & Key Terms
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Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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