Under contract terms, when may a party assign its rights?

• A. If that does not prejudice the rights of the other party to the contract
• B. Only with the other party's consent
• C. Assignments are never permitted
• D. Only if the assignment is to a family member

Answer: (A)

Rights under a contract can be transferred to someone else through an assignment, as long as the transfer does not prejudice the other party’s rights or improperly change their position. This means a party may assign its rights unless the contract says otherwise or the assignment would harm the other party’s interests. That’s why the best choice is that rights may be assigned if the action doesn’t prejudice the other party. Contracts don’t universally require the other party’s consent, and they don’t restrict assignments to family members by default. Do keep in mind that, even with an allowed assignment, the original party often remains liable unless the parties enter a novation to release the original party and substitute the new one.