Contracts第 57 / 120 题

When a new party is substituted for an original party to a contract, with the consent of all parties, this is called:

a.Novation
b.Assignment
c.Rescission
d.Estoppel

解析

Novation is the substitution of a new party or a new contract for an existing one, releasing the original party from liability, and it requires the consent of all parties. It differs from assignment, in which the original party may remain secondarily liable. Novation is common in loan assumptions where the lender releases the original borrower.

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