Contracts
In Michigan, novation of a real estate contract means:
AAdding new clauses to an existing contract
BSubstituting a new contract or party for the old one, releasing the original party from obligation✓ Correct
CExtending the closing date
DAssigning the contract to a new buyer
Explanation
Novation substitutes a new party or obligation for the original one, releasing the original party from liability. Unlike assignment, novation completely discharges the original obligor.
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