The release of one contractual party and the substitution of another party for the released party is called a(n):
A) substitution by law.
B) removal and replacement.
C) novation.
D) adjudication.
E) accord and satisfaction.

Question

Quizplus · Accepted Answer

The term novation refers to the release of one contractual party and the substitution of another party for the released party. Novation typically involves the substitution of one party with another party who takes on the obligations and rights of the released party. Novation requires the agreement of all parties involved in the contract. Therefore, option C is the correct answer. None of the other options apply to this scenario.

The Release of One Contractual Party and the Substitution of Another