In a real estate contract, an assignment:

Correct Answer

B) Transfers the assignor's contractual rights to a third party (the assignee)

An assignment transfers a party's contractual rights to a third party known as the assignee. Importantly, the original party (assignor) generally remains liable under the contract unless the other contracting party expressly releases them. Assignment is permitted unless the contract contains language expressly prohibiting it or applicable law restricts it. No regulatory approval is required, and assignment is not automatically prohibited in Montana residential contracts.