Novation occurs when
A) one of the parties to the contract ends the contract.
B) both parties to the contract assign their obligations to a third party.
C) one of the parties to the contract assigns his or her obligations to a third party.
D) the parties to a contract agree to terminate the contract and substitute a new contract.
E) both parties to the contract agree to terminate the contract because of circumstances beyond their control.

Question

Quizplus · Accepted Answer

Novation involves replacing an existing contract with a new one, with the consent of all parties involved, effectively substituting the original contract with a new agreement.

Novation Occurs When