Asked by arianna denn-thiele on Apr 29, 2024
Verified
Henry borrows money from Commerce Bank to purchase a house.However,he moves to another city to attend graduate school and sells the house to Maria.Henry wants to be released from his payment obligations to Commerce Bank.Which of the following would release Henry from his liability to Commerce Bank?
A) A delegation of the payment obligation by Henry to Maria will release Henry from liability.
B) The sale of the house by Henry to Maria involuntarily releases his payment obligation.
C) A delegation of the payment obligation to Maria along with a written notice to Commerce Bank can release Henry from the liability.
D) A novation in which Commerce Bank agrees to substitute Maria for Henry will release Henry.
Novation
is the act of replacing one obligation with another by mutual agreement, effectively transferring the rights and duties of one party under a contract to another party.
Delegation
The process of assigning specific duties or authority from one person to another within an organization or group.
Liability
A legal obligation or debt that an entity is required to pay to another.
- Comprehend the foundational concepts and procedures associated with ending, assigning, and delegating contracts.
- Familiarize oneself with the legal conditions and effects related to the conveyance of rights or liabilities under a contract.
Verified Answer
Learning Objectives
- Comprehend the foundational concepts and procedures associated with ending, assigning, and delegating contracts.
- Familiarize oneself with the legal conditions and effects related to the conveyance of rights or liabilities under a contract.
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