ContractsQuestion 59 of 120
Substituting a new contract for an existing one, or replacing a party with a new party by agreement, is known as:
a.Novation
b.Assignment without consent
c.Specific performance
d.Liquidated damages
Explanation
Novation replaces an original contract or party with a new one, releasing the original obligor with all parties' consent. It differs from a simple assignment, which transfers rights but may not release the assignor.
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