3D FX,LLC,and Vivid Star CG,Inc. ,are parties to a contract.They subsequently agree that Pixellated Inc.should take 3D's place and assume all of its rights and duties under the contract.This is
A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)commercial impracticability.

Question

Quizplus · Accepted Answer

The scenario described is that of a novation, which occurs when a new party takes over the rights and obligations of an existing party under a contract, effectively replacing the latter. This requires the consent of all parties involved and releases the original party from any liability or responsibility related to the contract.