ContractsIntermediateDelaware Exam
A 'novation' in a Delaware real estate contract refers to:
AA minor modification to the contract terms
BThe substitution of a new contract (or party) for an old one, releasing the original partyCorrect
CA court-ordered modification of an existing contract
DThe addition of a new contingency after contract execution
Why The substitution of a new contract (or party) for an old one, releasing the original party Is Correct
Answer B: The substitution of a new contract (or party) for an old one, releasing the original party
Novation is the substitution of a new obligation or party for an old one, with the consent of all parties, thereby releasing the original party from obligations under the original contract.
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
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