ContractsQuestion 68 of 120

A contract provision allowing a buyer to transfer their rights and obligations under the purchase contract to another buyer is a(n):

a.Habendum clause
b.Subordination clause
c.Defeasance clause
d.Assignment clause

Explanation

An assignment clause permits the buyer to assign the contract to a third party, who then steps into the buyer's position, subject to any limits in the contract. Some contracts restrict or prohibit assignment without the seller's consent.

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