Contracts
Which of the following best describes 'novation' in a real estate contract?
AAdding a new party to an existing contract without releasing the original party
BSubstituting a new contract or party for an existing one, releasing the original party✓ Correct
CCanceling a contract without any obligation
DTransferring a contract to a third party without the other party's consent
Explanation
Novation is the substitution of a new obligation for an existing one, or a new party for an original party, with the agreement of all parties and the complete release of the original obligation or party.
Related California Contracts Questions
- Which of the following is NOT a required element for a valid real estate contract in California?
- The 'parol evidence rule' in contract law prevents parties from:
- A 'contingency' in a real estate purchase agreement is:
- An 'exclusive right to sell' listing gives the broker:
- A buyer submits an offer on a home. Before the seller accepts, the buyer withdraws the offer. What is the result?
- What is the difference between a void contract and a voidable contract?
- Which of the following would render a real estate contract void in California?
- What is 'mutual consent' (meeting of the minds) in contract law?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →