Contracts
A 'novation' in a Montana real estate contract means:
AAdding a new addendum to the original contract
BSubstituting a new party or new obligation for an old one, with all parties' consent, releasing the original obligor✓ Correct
CModifying the purchase price by mutual agreement
DRecording the contract with the county
Explanation
Novation is the substitution of a new contract or new party for an existing one, with all parties' consent. In real estate, it may occur when a buyer assumes a loan and the lender releases the original borrower (seller) from liability.
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