A contract between Max and Nick provides for an "assignment of all rights." Max "assigns the contract" to Olin. Because a court will normally construe this wording as implying both an assignment of rights and a delegation of duties, if Olin fails to perform
A) the contract is void.
B) the contract is discharged.
C) Nick is liable.
D) Max is liable.

Question

Quizplus · Accepted Answer

Since the contract provides for an assignment of all rights, Max assigned both the rights and the duties to Olin. If Olin fails to perform, Max remains liable since he delegated his duties to Olin through the assignment of the contract. Nick's liability is not affected. The contract remains valid and enforceable, but Max is liable for any breach of the contract by Olin.

A Contract Between Max and Nick Provides for an "Assignment