What does the assignment of a contract involve?

The assignment of a contract involves the transfer of contract rights to another party. This means that one party (the assignor) transfers its rights under the contract to a third party (the assignee). It is important to note that while the rights are transferred, the obligations under the contract may or may not be transferred, depending on the terms of the contract and applicable laws.

The assignor remains liable for obligations unless there is an explicit agreement that absolves them of responsibility. This concept is crucial as it allows for flexibility in contractual relationships, enabling parties to bring in new parties to fulfill rights without needing to create a new agreement entirely.

Other options do not accurately describe assignment: revocation of contract rights implies an ending of rights, which contradicts the notion of assignment, termination of contractual obligations suggests that the contract is nullified entirely rather than rights being transferred, and negotiation of new contract terms involves alterations to the existing agreement rather than a simple transfer of rights.