Asked by Kristopher Curry on Apr 30, 2024
Verified
A novation is an agreement between two parties to have one substitute for the other in a contract.
Novation
The act of replacing an existing obligation with a new one, transferring rights and duties from the original party to a new party.
Substitute
A replacement or alternative for someone or something.
Contract
A binding contract between multiple parties that is supported by legal enforcement.
- Determine the legal prerequisites and ramifications for substituted contracts, novations, and accord and satisfaction.
Verified Answer
SA
Sarah AlundayMay 02, 2024
Final Answer :
False
Explanation :
A novation involves three parties: the original contracting parties and a third party who replaces one of the original parties in the contract, with all parties agreeing to the substitution.
Learning Objectives
- Determine the legal prerequisites and ramifications for substituted contracts, novations, and accord and satisfaction.