Which of the following statements regarding novation is False?
A) Novation refers to the creation of a new contract through the substitution of a third party for one of the original parties to a contract, with everyone's consent.
B) Novation requires that the new debtor assume complete liability.
C) Novation requires the creditor to accept the new debtor as principal debtor, not merely as a guarantor.
D) Novation requires the creditor to accept the new contract in full satisfaction and substitution for the old contract.
E) Novation requires the inclusion of a force majeure clause in order to be enforceable.

Question

Quizplus · Accepted Answer

Novation does not require the inclusion of a force majeure clause in order to be enforceable. Novation refers to the substitution of a new party for an original party to a contract, with everyone's consent. The new party assumes complete liability, and the creditor accepts them as the principal debtor, not merely as a guarantor. The creditor also accepts the new contract in full satisfaction and substitution for the old contract.

Which of the Following Statements Regarding Novation Is False