Blake agreed to renovate Jane's house, and they drafted a written contract. However, Blake was unable to complete the renovation due to an accident. Blake's friend, Tom, agreed to complete the job, and Jane agreed to release Blake from the contract. The terms of the old contract remained the same. This process of substitution of a contract is known as a(n).
A)rescission
B)novation
C)option
D)counteroffer

Question

Blake agreed to renovate Jane's house, and they drafted a written contract. However, Blake was unable to complete the renovation due to an accident. Blake's friend, Tom, agreed to complete the job, and Jane agreed to release Blake from the contract. The terms of the old contract remained the same. This process of substitution of a contract is known as a(n).  ​
A)rescission
B)novation
C)option
D)counteroffer

Quizplus · Accepted Answer

Novation is the process where an existing contract is replaced by a new one, with a new party taking over the obligations of one of the original parties, while the other terms remain unchanged. In this scenario, Tom takes over Blake's obligations to Jane under the original contract terms, which is a classic example of novation.

Blake Agreed to Renovate Jane's House, and They Drafted a Written