Bethany Tolson had a contract to supply ice to Jake's Creamery.Bethany found that the demands for her ice were exceeding her ability to supply it and she recruited Callie Oldham to take over her supply contract for Jake.Bethany,Jake,and Callie all sign an agreement to substitute Callie in the supply contract.Which of the following describes what has been done?
A)accord and satisfaction
B)novation
C)modification
D)impracticability defense

Question

Bethany Tolson had a contract to supply ice to Jake's Creamery.Bethany found that the demands for her ice were exceeding her ability to supply it and she recruited Callie Oldham to take over her supply contract for Jake.Bethany,Jake,and Callie all sign an agreement to substitute Callie in the supply contract.Which of the following describes what has been done?​
A)​accord and satisfaction
B)​novation
C)modification
D)impracticability defense

Quizplus · Accepted Answer

Novation occurs when a new party takes over the obligations of an existing contract, releasing the original party from those obligations. In this scenario, Callie has taken over Bethany's supply contract for Jake, and all parties have agreed to substitute her in, releasing Bethany from her obligations.

Bethany Tolson Had a Contract to Supply Ice to Jake's