BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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performance would be materially changed
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performance becomes substantially more difficult
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performance will not be materially changed
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there are personal injury claims
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Detailed explanation-1: -However, in certain cases, these contractual rights and obligations can be transferred to a third party. This is known as the assignment of contract.
Detailed explanation-2: -An assignment involves the transfer by an assignor of some or all of its rights to receive performance under the contract to an assignee. The assignee then receives all the benefits of the assigned rights. The assignment doesn’t eliminate or reduce the assignor’s performance commitments to the nonassigning party.
Detailed explanation-3: -A right cannot be assigned if the assignment will significantly increase or alter the risks to or the duties of the obligor (the party owing performance under the contract).
Detailed explanation-4: -Novating a contract Novation allows both the rights and obligations under contracts to be transferred by one party to a third party.