Contracts
Novation in a Utah real estate contract occurs when:
ABoth parties agree to add an addendum to the original contract
BAn original party is replaced by a new party with the consent of all parties, releasing the original party✓ Correct
CThe contract is assigned to a new buyer without releasing the original buyer
DThe seller agrees to a lower purchase price
Explanation
Novation substitutes a new party for an original party, releasing the original party from all obligations. Unlike assignment (where the original party remains secondarily liable), novation fully releases the departing party. All parties must consent to novation.
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