A(n) __________ Transfers All Rights and Obligations in a Contract

question 22

Multiple Choice

A(n) __________ transfers all rights and obligations in a contract.

• A) assignment
• B) novation
• C) exemption
• D) execution

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Definitions:

Perfect Security Interest

An interest that is legally protected and established in a way that no other claimant can have a higher claim upon the collateral in question.

Purchase Money

Funds that are used specifically for the acquisition of assets, often related to real estate transactions or personal property.

Installments

Payments that are made periodically towards a debt, allowing for the total amount to be paid off over time rather than all at once.

Financing Statement

A document filed by a creditor to give public notice of a security interest in property of the debtor, used in UCC filings.