Contracts
What is the legal difference between 'assignment' and 'novation' of a Florida real estate contract?
AThey are legally identical terms
BAssignment transfers rights but doesn't release the original party; novation releases the original party✓ Correct
CNovation is only used in commercial transactions
DAssignment requires court approval; novation does not
Explanation
In an assignment, the original party transfers their contract rights to a third party but remains secondarily liable. In a novation, all parties agree to substitute a new party, and the original party is released from all further obligations.
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