assignment and novation

8. What is the main difference between assignment and novation?

A. Assignment and novation are two parts of a single process.

B. In assignment, a new obligor promises to perform an existing contract, but the old obligor remains liable for performance; in novation, a new contract substitutes a new obligor for the old one.

C. In novation, a new obligor promises to perform an existing contract, but the old obligor remains liable for performance; in assignment, a new contract substitutes a new obligor for the old one.

D. There is no substantial difference.