A buyer signs a Residential Purchase Contract for a property in Lethbridge. Before the possession date, the buyer experiences unexpected financial hardship and can no longer afford the property. The buyer finds a relative who is willing to take over the contract under all the exact same terms and conditions. What is the most appropriate legal mechanism for the buyer to transfer their rights and obligations to the relative, with the seller's consent?

Question: A buyer signs a Residential Purchase Contract for a property in Lethbridge. Before the possession date, the buyer experiences unexpected financial hardship and can no longer afford the property. The buyer finds a relative who is willing to take over the contract under all the exact same terms and conditions. What is the most appropriate legal mechanism for the buyer to transfer their rights and obligations to the relative, with the seller's consent?

Answer options:

• Novation, creating a new contract with the relative and seller.
• Subletting, as this is similar to a lease agreement. ✅ Assignment, transferring contractual rights and possibly obligations.
• Indemnification, protecting the relative from future liabilities.

Correct answer: Assignment, transferring contractual rights and possibly obligations.

Explanation: Assignment is the transfer of one's rights and, with the consent of the other contracting party (the seller), obligations under a contract to a third party. This allows the original buyer to transfer their interest in the purchase contract to their relative. Novation would involve extinguishing the original contract and creating a new one, which is a more complex process often used when there's a complete change of parties and terms. The Residential Purchase Contract standardizes assignment provisions.