Assignment
Transferring contractual rights to a third party, while the original party often remains secondarily liable.
Quick flashcard
What does Assignment mean on the Texas real estate exam?
Answer: Transferring contractual rights to a third party, while the original party often remains secondarily liable.
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Assignment definition
Assignment transfers a party's rights and interests under a contract to a third party, the assignee. Unless the contract prohibits assignment, most real estate contracts can be assigned. The assignee steps into the assignor's position to receive the benefits of the contract.
In an assignment, the original party (the assignor) commonly remains secondarily liable if the assignee does not perform. To remove that liability entirely, the parties would need a novation.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Contracts & Agency (16 of 80 National)
From definition to recall
See this term inside a real exam question.
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