Contracts
Novation in a NJ real estate contract means:
AAdding an addendum to the contract
BSubstituting a new party or new obligation for an existing one, releasing the original party from liability✓ Correct
CVoiding the contract due to mutual mistake
DRecording the contract with the county clerk
Explanation
Novation substitutes a new party or new obligation for an existing one with the consent of all parties, releasing the original obligor from further liability under the contract.
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