With regard to the law governing privity of contract and assignment, which of the following is false?
A) The privity of contract rule states that only the parties to the contract have rights and obligations under the contract.
B) Assignments are modifications of the privity of contract rule since they do allow a stranger to the contract to receive benefits from the contract.
C) A statutory assignment is easier to enforce than an equitable assignment.
D) A party to a contract for services can assign both his contractual obligations and his contractual rights.
E) Novation refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another.

Question

Quizplus · Accepted Answer

The privity of contract rule generally prevents the assignment of obligations without the consent of the other party. While contractual rights can often be assigned, obligations usually cannot be transferred without agreement from all parties involved, making statement D false.

With Regard to the Law Governing Privity of Contract and Assignment