Contracts

Under Mississippi contract law, 'novation' occurs when:

AA contract is renewed for another term
BAn original party is replaced by a new party, extinguishing the original party's obligations✓ Correct
CA contract is modified by addendum
DBoth parties extend the contract deadline

Explanation

Novation substitutes a new party for an original party to a contract, with the consent of all parties, and releases the original party from further obligation. The new party takes on all the rights and duties of the original.

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