BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Assignment
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Breach
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Delegate
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Novation
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Detailed explanation-1: -“Novation is a act whereby one party transfers all its obligations and benefits under a contract to a third party.” In a novation, a third party successfully substitutes the original party as a party to the contract.
Detailed explanation-2: -Assignee is a person to whom a right is transferred by the person holding such rights under the transferred contract (the “assignor”). The act of transferring is referred to as “assigning” or “assignment” and is a concept found in both contract and property law.
Detailed explanation-3: -An assignment of contract occurs when one party to an existing contract (the “assignor") hands off the contract’s obligations and benefits to another party (the “assignee"). Ideally, the assignor wants the assignee to step into his shoes and assume all of his contractual obligations and rights.
Detailed explanation-4: -Which of the following statements is true of the rights of an assignee to a contract? An assignee cannot be assigned the rights to a contract if the assignment decreases the obligor’s risk or duties.