Which of the following refers to an agreement that substitutes a new party for one of the original contracting parties and relieves the existing party of liability on the contract?
A) novation
B) substituted contract
C) mutual rescission
D) accord

Question

Quizplus · Accepted Answer

Novation is the only option that specifically involves substituting a party and releasing the original party from liability. A substituted contract involves replacing the original contract with a new one, but not necessarily changing the parties involved. Mutual rescission involves canceling the entire contract, and an accord is an agreement to accept something different than originally promised, but does not necessarily replace a party.

Which of the Following Refers to an Agreement That Substitutes