Contracts
What is the difference between an assignment and a novation of an Iowa real estate contract?
AAssignment replaces a party; novation transfers rights without releasing the original party
BNovation replaces a party with the consent of all parties, releasing the original party; assignment transfers rights but the original party remains liable✓ Correct
CBoth have identical legal effects
DAssignment requires court approval; novation does not
Explanation
In a novation, a new party is substituted for an original party with all parties' consent, releasing the original party from liability. In an assignment, rights are transferred but the original party typically remains secondarily liable.
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