ContractsIntermediateDelaware Exam

Assignment of a real estate contract transfers:

ATitle to the property
BThe assigning party's rights and obligations under the contract to a third partyCorrect
CThe mortgage obligation to the new buyer
DOnly the seller's obligations

Why The assigning party's rights and obligations under the contract to a third party Is Correct

Answer B: The assigning party's rights and obligations under the contract to a third party

Assignment transfers the assigning party's contractual rights and obligations to an assignee (third party). The original party may remain liable unless expressly released (novation).

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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