ContractsQuestion 65 of 100
The transfer of a contract's rights and duties to another party, where the original party may remain secondarily liable, is:
a.Assignment
b.Novation
c.Rescission
d.Subordination
Explanation
An assignment transfers a party's contractual rights and obligations to a third party, but the original party can remain secondarily liable if the assignee fails to perform. Novation, by contrast, fully releases the original party. Many contracts allow assignment unless expressly prohibited.
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