Stuart signs a contract that allows him to rent a snowplow from Homer's Plow Company.The contract stipulates that he has to pay $50 per week.Winter ends sooner than expected,so Stuart wants to return the plow ahead of the due date in order to avoid paying unnecessary rent.Homer's Plow Company agrees to let Stuart return the plow as long as he signs a contract that requires him to rent the plow again next year.This is an example of a(n)______.
A) waiver
B) arbitration
C) rescission
D) release
E) novation

Question

Quizplus · Accepted Answer

This is an example of a release. Releases usually occur before a contracting party fails to perform. A release often takes the form of a negotiated contract. The release is bargained for and is supported by consideration. In this scenario, Stuart negotiates with Homer's Plow Company to allow him to return the plow before the due date in exchange for renting the plow again next year. Hence, Stuart has been released from his contractual obligations.

Stuart Signs a Contract That Allows Him to Rent a Snowplow