Transfer of Contracts & Novation

The video tutorial explains the rights and obligations in contracts, focusing on the assignment of these rights and duties. It covers the roles of assignor and assignee, the necessity of notifying the obligor, and the types of contracts that cannot be assigned, such as those requiring specific skills or supply contracts. The tutorial also discusses the liability of the assignor if the assignee fails to perform and introduces the concept of novation, which involves creating a new contract to relieve the original party of liability.

What is the role of the assignor in a contract?

• The person who benefits from the contract

• The person who signs the contract

• The person who receives the rights or obligations

• The person who performs the duties

Why might a supply contract be non-assignable?

• Because it involves a large number of parties

• Because it involves financial transactions

• Because the assignee might have greater needs than the assignor

• Because it is a short-term contract

Which type of contract is heavily dependent on specific skills?

• Supply contract

• Construction contract

• Performance contract

• Financial contract

What happens if the person to whom an obligation is transferred fails to perform?

• The original party is relieved of liability

• The original party can still be sued

• The obligation is transferred back to the original party

• The contract is automatically voided

How can a party be relieved from liability after transferring an obligation?

• By transferring the obligation back

• Through novation

• By signing a new contract

• By notifying the obligor