Carl, a contractor, and Lyle, a landowner, have a contract whereby Carl is to perform routine construction services according to the blueprints that Lyle has provided. Carl assigns the contract to David, a developer. As a result of this assignment:

A) Lyle can bring suit based upon detrimental reliance.
B) Carl has no more rights or responsibilities with regard to the contract.
C) Carl no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform.
D) Carl has all of his rights under the contract, but he has no responsibility for the performance of the duties.

Question

Hamna Faisal · Accepted Answer

Final Answer : C, Explanation :  Carl's assignment of the contract to David transfers his rights under the contract to David, but Carl remains liable for the performance of the contract's duties unless Lyle agrees to release him from those responsibilities. This is because in most jurisdictions, an assignment of a contract does not relieve the assignor of liability for the performance of contractual duties.

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