ContractsContract_assignment_and_novationMEDIUM
After an assignment of a purchase contract, the original buyer's friend closes on the property instead. If the friend fails to pay, can the seller pursue the original buyer?
Correct Answer
A) Yes, because assignment transfers rights but the original buyer may remain liable unless a novation occurs
Assignment transfers rights, but the original party may remain liable for the obligations unless all parties agree to a novation releasing the original obligor.
Answer Options
A
Yes, because assignment transfers rights but the original buyer may remain liable unless a novation occursB
No, because assignment releases the original buyerC
No, because the friend assumed all obligationsD
Yes, but only for half the purchase priceWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
contract_assignment_and_novationcontractsassignmentremaining_liability
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