ContractsIntermediateDelaware Exam

What is 'assignment' of a real estate contract in Delaware?

AThe seller assigns their obligation to sell to another seller
BThe transfer of a party's rights and/or obligations under a contract to a third partyCorrect
CThe broker's assignment of the listing to another agent
DThe assignment of purchase price adjustments

Why The transfer of a party's rights and/or obligations under a contract to a third party Is Correct

Answer B: The transfer of a party's rights and/or obligations under a contract to a third party

Assignment transfers a party's contractual rights (and sometimes obligations) to a third party (the assignee). In real estate, a buyer may assign their purchase contract to another buyer unless the contract prohibits assignment.

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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