Molly and Craig are the original parties to a contract.Craig is obligated to design a Website for Molly.They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig's rights and duties under the contract.The agreement releases Craig from his obligations under the contract.This agreement is
A)a novation.
B)an accord and satisfaction.
C)an assignment.
D)a nullification.

Question

Quizplus · Accepted Answer

The agreement between Molly, Craig, and Eric meets the requirements for a novation. A novation occurs when the original parties to a contract agree to substitute a new party for one of the original parties, and the new party assumes all of the rights and obligations of the original party. In this case, Eric is taking the place of Craig and assuming all of Craig's rights and duties under the contract, and Craig is being released from his obligations under the contract. This meets the requirements for a novation.

Molly and Craig Are the Original Parties to a Contract