When all parties to a contract agree to a significant change in the contract, the change is called a(n):
A) assignment.
B) delegation.
C) execution.
D) novation.

Question

Quizplus · Accepted Answer

Novation is the term used when all parties to a contract agree to a significant change in the contract. Novation generally involves the substitution of a new contract for the original contract, with the release of one or more parties from their obligations under the original contract. Assignment involves the transfer of one party's rights and obligations under a contract to another party, while delegation involves the transfer of one party's duties under a contract to another party. Execution simply refers to the formal signing and implementation of a contract.

When All Parties to a Contract Agree to a Significant