Person A was contracted by Person B to build a beach house.Soon after,Person A was unable to complete the entire house,and hence assigned Person C to complete the contract,after seeking Person B's approval.In this example,the obligation of Person A is discharged and this is a:
A) novation of contract.
B) contingent contract.
C) specialty contract.
D) contract of records.

Question

Quizplus · Accepted Answer

Novation of contract occurs when a new party is substituted for an original party to a contract with the consent of all parties involved. In this scenario, Person A assigned Person C with the approval of Person B, which means that the obligation of Person A was discharged and Person C took over the contract. This is a clear example of novation of contract.

Person a Was Contracted by Person B to Build a Beach