A buyer assigns a purchase contract to an LLC the buyer controls. The assignment clause in the contract permits assignment 'to an entity controlled by the buyer.' Is the assignment valid?
Correct Answer
C) Yes, because the contract expressly permits assignment to a buyer-controlled entity
If the contract expressly permits assignment to a buyer-controlled entity, the assignment to the buyer's LLC is valid under the contract terms.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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