Contracts

Novation in a contract context means:

AAdding new terms to an existing contract via addendum
BSubstituting a new contract or party for an existing one, releasing the original party✓ Correct
CCanceling a contract and returning parties to their original positions
DExtending the closing date by mutual agreement

Explanation

Novation is the substitution of a new contract for an existing one, or the substitution of a new party for an original party, releasing the original party from their obligations.

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