Fiona owed Lutz $5,000.As the result of an unrelated transaction,Lutz owed Bing that same amount.The three parties signed an agreement that Fiona would pay Bing instead of Lutz and Lutz would be discharged from all liability.The agreement among the parties is:
A)unenforceable for lack of consideration.
B)voidable at Bing's option.
C)an accord and satisfaction.
D)a novation.

Question

Quizplus · Accepted Answer

Novation allows the original obligor to be discharged and a new obligor to be substituted in his/her place.

Fiona Owed Lutz $5,000