Contracts

Novation in an Indiana real estate contract occurs when:

ABoth parties add an amendment to the existing contract
BA new contract (or new party) replaces the original contract (or party), releasing the original party from liability✓ Correct
CThe contract is assigned to a third party without releasing the original buyer
DThe contract expires without performance

Explanation

Novation substitutes a new party or new contract for the original, fully releasing the original party from further obligation. It requires the consent of all parties.

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