A novation agreement respecting a party or parties is only effective if
A)the new party introduced by novation consents in writing.
B)the creditor serves notice in writing on the debtor.
C)the parties to the original contract and the new party introduced by novation all give their consent.
D)all parties to the agreement have already performed their obligations under the agreement.
E)the replacement contract contains a clear condition precedent.

Question

Quizplus · Accepted Answer

A novation agreement requires the consent of all parties involved, including the original parties and the new party being introduced by novation. This consent must be given in writing, making option C the correct choice. Option A is partially correct but does not cover the requirement of the consent of all parties. Option B is incorrect as notice is not enough to create a novation. Option D and option E are not relevant to novation agreements.

A Novation Agreement Respecting a Party or Parties Is Only