Bill enters into a contract with Simon to rework the flooring in Simon's house. Bill later realizes that he will be unable to fulfill the terms of the contract and communicates this to Simon. Both parties agree that George will rework the floor instead of Bill as stated in the original contract. This type of discharge of contract is described as .
A) accord and satisfaction
B) novation
C) substituted agreement
D) compromise agreement

Question

Quizplus · Accepted Answer

Novation occurs when both parties agree to substitute a new contract for the original one, and this new agreement is a complete and final discharge of the old agreement. In this case, both parties have agreed that George will rework the floor instead of Bill as originally agreed, satisfying the terms of the original contract through novation.

Bill Enters into a Contract with Simon to Rework the Flooring