Contracts
What is 'assignment' of a contract?
AMoving a property to a new location
BTransferring one's rights or obligations under a contract to a third party✓ Correct
CAssigning a DRE license to another person
DThe escrow company's task list
Explanation
Assignment transfers a party's rights (and sometimes obligations) under a contract to a third party. In real estate, contracts are generally assignable unless the contract expressly prohibits it. The original party may remain liable unless the other party agrees to a novation.
Related California Contracts Questions
- An 'addendum' to a real estate contract:
- Under California's Statute of Frauds, which of the following real estate agreements must be in writing to be enforceable?
- In an exclusive right to sell listing, the listing broker earns a commission if:
- When a buyer makes an offer and the seller counters with different terms, the original offer is:
- Mutual mistake of a material fact in a contract may allow the parties to:
- An 'option contract' in real estate gives the buyer:
- Under California law, a minor (under 18) who signs a real estate contract:
- Which of the following is NOT a required element of a valid contract?
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