Contracts
What is the difference between an 'assignment' and a 'novation' of a contract?
AAssignment releases the original party; novation does not
BNovation substitutes a new party and releases the original obligor; assignment transfers rights but keeps the original party liable✓ Correct
CBoth assignment and novation release the original party from all obligations
DNovation is only available in commercial leases
Explanation
In an assignment, the original party transfers their contractual rights/duties to a third party but remains secondarily liable. In a novation, the original party is completely released and a new party steps in with the other party's consent, forming a new contract.
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