Contracts
In Colorado, 'novation' in a real estate contract occurs when:
AAn offer is withdrawn before acceptance
BA new party is substituted for an original party with the consent of all parties, releasing the original party✓ Correct
CA contract is modified by addendum
DA contract is assigned without releasing the original obligor
Explanation
Novation is the substitution of a new party for an original contracting party, with the consent of all parties, which releases the original party from all obligations. It differs from assignment, which does not necessarily release the original party.
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