If a third party enters the contract as a result of a novation, the party whose rights or duties are assumed is completely relieved of obligations.

Question

Quizplus · Accepted Answer

When a novation occurs, a third party takes the place of one of the original parties, and assumes their rights and duties under the contract. This means that the original party is completely relieved of their obligations under the contract, and the new party becomes fully responsible for fulfilling those obligations. Therefore, the statement is true, and the correct answer is A.

If a Third Party Enters the Contract as a Result