Contracts
What is the difference between assignment and novation of a contract?
AAssignment transfers duties; novation transfers rights
BAssignment transfers rights while original party remains liable; novation replaces a party releasing the original✓ Correct
CThey are the same thing
DAssignment requires court approval; novation does not
Explanation
In assignment, the original party transfers rights to a third party but remains liable. In novation, a new party replaces the original party with the other party's consent, releasing the original from obligations.
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