Contracts
Novation in a Kentucky real estate transaction means:
AAdding a new contingency to an existing contract
BSubstituting a new party or contract for an existing one, releasing the original party✓ Correct
CCanceling a contract with no further obligations
DAdding a new co-buyer to an existing contract
Explanation
Novation substitutes a new party or a new contract for an existing one, with the consent of all parties, releasing the original party from their obligations.
Related Kentucky Contracts Questions
- A Kentucky seller accepts a buyer's offer but then crosses out one term and initials the change before returning it. This creates:
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