Contracts
Novation in a real estate contract is the substitution of:
AOne contract term for another
BA new party or obligation for an existing one, releasing the original party from liability✓ Correct
CVerbal agreement for a written agreement
DA contingency clause for a non-contingency clause
Explanation
Novation replaces one party to a contract with a new party (or substitutes a new obligation), releasing the original party from further liability. The other contracting party must consent to the substitution.
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