In material alteration
A) there is an agreement not to proceed with performance of a contract already in existence.
B) the parties are directly concerned with the discharge of an existing contract.
C) the parties are basically preoccupied with the new arrangement, and the discharge of the old contract is incidental.
D) a replacement of one of the parties discharges the original contract and substitutes a new one.
E) none of the above

Question

Quizplus · Accepted Answer

Material alteration refers to a situation where the parties to an existing contract agree to a new arrangement that significantly changes the original terms of the contract. In material alteration, the parties are primarily preoccupied with the new arrangement, and the discharge of the old contract is incidental. It is different from novation, where the original contract is discharged and replaced with a new one due to the substitution of one of the original parties with a new one. Option A is incorrect because an agreement not to proceed with performance would result in discharge by agreement. Option B is incorrect because it suggests that the alteration is minor and does not significantly affect the original contract. Option D is incorrect because it describes novation, not material alteration.

In Material Alteration