Contracts

What is novation in the context of Nevada real estate contracts?

AAdding a new contingency to an existing contract
BSubstituting a new contract or new party in place of an old one, releasing the original party from obligations✓ Correct
CCorrecting errors in a contract after signing
DA buyer's right to cancel during the inspection period

Explanation

Novation substitutes a new obligation or party for an old one, with the consent of all parties. The original party is released from liability.

Related Nevada Contracts Questions

Practice More Nevada Real Estate Questions

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

Take the Free Nevada Quiz →