Which of the following is true about the similarities and differences between a substituted contract and a novation?

Question

Quizplus · Accepted Answer

A novation involves a new party taking the place of one of the original parties to the contract, while a substituted contract involves the parties to the original contract entering into a new agreement that replaces the original one. Additionally, a novation requires the consent of all parties and must be in writing, while a substituted contract may or may not require written consent. Both types of contracts result in the discharge of duties under the original contract once the new agreement is performed. Option A is incorrect because both types of contracts may require written formality. Option B is incorrect because duties can be discharged upon the adoption of the new contract. Option D is incorrect because they are not the same thing. Option E is incorrect because only a novation involves a new party.

Which of the Following Is True About the Similarities and Differences