Contracts
Novation in a contract context means:
AAdding a new addendum to an existing contract
BSubstituting a new contract or party for an existing one, extinguishing the old obligation✓ Correct
CMaking a minor modification to contract terms
DExtending the closing date by mutual agreement
Explanation
Novation is the substitution of a new contract or a new party for an existing one, with the consent of all parties, which extinguishes the original obligation.
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