Contracts

An 'assignment' of a contract means:

ABoth parties cancel and re-execute a new contract
BOne party transfers their rights and obligations under the contract to a third party✓ Correct
CThe contract is renewed for an additional term
DThe broker takes over the obligations of a party

Explanation

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

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