Lin and Mercedes agree to incorporate to open and operate a Natural & Organic Foods Café. Before the opening,they decide to replace Mercedes with Ngo as a party to the deal. They can best accomplish this by
A)an agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)anticipatory repudiation.

Question

Quizplus · Accepted Answer

A novation is the substitution of a new party for an existing one in a contract, and it requires the consent of all parties involved. This is the best option for replacing Mercedes with Ngo as a party to the deal, as it ensures that all parties are aware of and agree to the change in the contract. An agreement to rescind would simply cancel the original contract, and an accord and satisfaction typically involves the settlement of a dispute, which is not the case here. Anticipatory repudiation occurs when a party indicates they will not fulfill their obligations in the contract, which is not relevant in this scenario.

Lin and Mercedes Agree to Incorporate to Open and Operate