Contracts
In Idaho real estate, 'novation' occurs when:
AA contract is amended to add new terms
BA new contract substitutes for an old one, replacing an original party with a new party and releasing the original party from obligations✓ Correct
CA contract is ratified after unauthorized signing
DA lease is renewed for another term
Explanation
Novation substitutes a new contract or party for an old one, releasing the original party from their obligations. In real estate, this commonly occurs when a buyer assumes a loan and the original borrower is released from liability.
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