Contracts
Novation in contract law means:
AModifying a minor term in an existing contract
BSubstituting a new party or obligation for an existing one, releasing the original party✓ Correct
CCanceling a contract without penalty
DAdding an additional contingency to a contract
Explanation
Novation substitutes a new contract, party, or obligation in place of an existing one, with the consent of all parties, thereby releasing the original party from liability.
Related Alabama Contracts Questions
- A purchase contract includes a seller's right to continue showing the property. If the buyer does not remove their contingency within a specified time after receiving a backup offer notice, the contract:
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