Contracts
What is the difference between an assignment and a novation in contract law?
AThey are identical
BAssignment substitutes a new party and releases the original; novation transfers rights without releasing the original
CNovation substitutes a new party and releases the original; assignment transfers rights without releasing the original party from liability✓ Correct
DAssignment requires court approval; novation does not
Explanation
In a novation, a new party is substituted and the original party is released from liability. In an assignment, the original party transfers their rights but remains secondarily liable unless released.
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