A new contract in substitution of an old contract is which of the following?
A)Breach
B)Rescission
C)Release
D)Novation

Question

Quizplus · Accepted Answer

Novation occurs when a new contract is created to replace an existing contract, with the parties agreeing to release each other from their obligations under the old contract. This is different from rescission, which involves cancelling an existing contract altogether, and release, which involves one party giving up their right to enforce a contract but does not create a new agreement. Breach occurs when one party fails to fulfill their obligations under a contract, which is not the same thing as creating a new contract to replace the old one.

A New Contract in Substitution of an Old Contract Is