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Mary agreed to buy her mother’s house when her mother moves to a senior living community. They sign a purchase agreement, but when Mary has to move because of work, she signs her rights in the contract over to her sister, Tina. Mary may still owe money if Tina can’t come up with the agreed-upon funds. What’s happening in this scenario?

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jepessoa

Answer:

What happened here is that Mary assigned her purchase contract to her sister, but if her sister is not able to perform the obligations completely, Mary will still be liable until the contract is completed.

Assignment of a contract refers to substituting one party for another, but the original party's obligations still exist until the contract is completely fulfilled.

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