TOGC Transfer of Contracts - Pidgin English?

I'm having trouble fathoming the final sentence of VTOGC3540 "Article 5 VAT (Special Provisions) Order 1995: Has there been the transfer of a business or just a sale of assets?: transfer of contracts and work in progress."

Quote:

If a purchaser.... takes over obligations under contracts with [a seller's] customers, this suggests a TOGC.

....

It is not always possible however to transfer or assign contracts - new ones normally have to be arranged, often by way of novation. This is a tripartite agreement that requires all three parties to consent. It releases the original party to the contract from his obligations and establishes a new one between the other two. If contracts are assigned (not novated) the original supplier is still contractually obliged to fulfil the contract. In these circumstances, the purchaser is not taking on the business obligations of the seller.

End quote.

Should I be reading the final sentence in conjunction with the penultimate sentence? ie

If contracts are assigned (not novated) the original supplier is still contractually obliged to fulfil the contract. In these circumstances, the purchaser is not taking on the business obligations of the seller.

Or should I read around the penultimate sentence (as one might if it were bracketed)?:

It is not always possible however to transfer or assign contracts - new ones normally have to be arranged, often by way of novation. This is a tripartite agreement that requires all three parties to consent. It releases the original party to the contract from his obligations and establishes a new one between the other two.     ......   In these circumstances, the purchaser is not taking on the business obligations of the seller.

I've looked at this ambiguous passage far too long to be able to decide - which interpretation is correct please?