Asked by Brigid Ripley on Jun 25, 2024
Verified
Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is
A) a mutual agreement to rescind.
B) an accord and satisfaction.
C) a novation.
D) specific performance.
Novation
The act of replacing an original party in a contract with a new party, with the consent of all involved, effectively creating a new contract.
- Grasp the concept of novation and its implications for contractual obligations.
Verified Answer
TH
Tanner HearneJun 29, 2024
Final Answer :
C
Explanation :
A novation occurs when a new party replaces an original party in a contract, assuming all rights and duties. This is exactly what happens when In the Wind Inc. takes Gliders' place in the contract with Hang Time Inc.
Learning Objectives
- Grasp the concept of novation and its implications for contractual obligations.