ContractsContract_assignment_and_novationMEDIUM
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.
Answer Options
A
No, because assignments to entities are never permittedB
No, because the seller must always consent to any assignmentC
Yes, because the contract expressly permits assignment to a buyer-controlled entityD
Yes, but only if the LLC pays a separate assignment feeWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Key Terms:
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