Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is
A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)specific performance.

Question

Quizplus · Accepted Answer

A novation occurs when a new party replaces an original party in a contract, assuming all rights and duties. This is exactly what happens when In the Wind Inc. takes Gliders' place in the contract with Hang Time Inc.