Which of the following statements regarding novation is false?
A) Novation requires the inclusion of a force majeure clause in order to be enforceable.
B) Novation requires the creditor to accept the new debtor as principal debtor, not merely as a guarantor.
C) Novation requires that the new debtor assume complete liability.
D) Novation requires the creditor to accept the new contract in full satisfaction and substitution for the old contract.
E) Novation refers to the creation of a new contract through the substitution of a third party
For one of the original parties to a contract, with everyone's consent.

Question

Quizplus · Accepted Answer

Novation does not require the inclusion of a force majeure clause in order to be enforceable. Novation refers to the substitution of a new contract or party in place of an original one, with the consent of all parties involved. The new debtor assumes complete liability, and the creditor must accept the new contract in full satisfaction and substitution for the old one. The creditor also accepts the new debtor as the principal debtor, not merely as a guarantor.

Which of the Following Statements Regarding Novation Is False