Contracts
Under Nevada real estate law, what is the difference between an assignment and a novation of a contract?
AThere is no difference; both terms mean the same thing
BAn assignment transfers rights to a third party while the original party may remain liable; novation substitutes a new party and releases the original party✓ Correct
CAn assignment requires court approval; novation does not
DNovation applies only to leases; assignment applies only to sales contracts
Explanation
In an assignment, the original party (assignor) transfers their rights to a third party (assignee), but may remain liable. In a novation, the original party is released and the new party assumes all obligations with the other original party's consent.
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