Contracts
What is a 'novation' in Ohio contract law?
AA court-ordered modification of contract terms
BSubstitution of a new contract or new party for an old one, releasing the original party from liability✓ Correct
CA minor amendment to an existing contract
DThe automatic renewal of a lease
Explanation
A novation substitutes a new obligation or party for an old one. In real estate, it occurs when a new buyer assumes a mortgage and the lender releases the original borrower from further obligation.
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