Contracts

Under Louisiana law, 'novation' in a real estate contract means:

AThe addition of new terms to an existing contract
BThe substitution of a new contract or party for an existing one, releasing the original party✓ Correct
CA court order enforcing the original contract
DThe addition of a co-borrower to a mortgage

Explanation

Novation replaces an existing contract with a new one, or substitutes a new party for an original party, thereby releasing the original party from their obligations.

Related Louisiana Contracts Questions

Practice More Louisiana Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Louisiana Quiz →