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Which of the following is TRUE regarding the assignment of contracts?

A. Assigned contracts make the assignee solely liable in the event of breach.
B. Contracts may not be assigned without the seller's permission.
C. An assignment transfers all rights and obligations of a contract to a third party.
D. Contracts are assignable, unless the contract specifically prohibits assignment.

User Alijvhr
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1 Answer

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Final answer:

The true statement about contract assignment is that contracts are assignable unless explicitly prohibited by the contract itself. This is underpinned by contractual rights, which allow for enforceable agreements based on property rights.

Step-by-step explanation:

Among the options provided regarding the assignment of contracts, the statement that is TRUE is: D. Contracts are assignable, unless the contract specifically prohibits assignment. This concept is based on the nature of contractual rights, which are rooted in property rights and allow individuals to create agreements concerning the use of their property, complete with legal recourse in cases of noncompliance. Typically, an assignment involves the transfer of rights or interests from one party to another, but not the obligations unless agreed upon. The legal system plays a critical role in enforcing such assignments and the original contract terms, ensuring that individuals and businesses are inclined to engage in transactions with confidence in the enforcement of these agreements.

User Pangratz
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