Albert entered into a contract under the name of one of his corporations.After consulting with his accountant regarding tax implications,he asked,and the other party agreed,to change the name of the company in that contract.Which of the following would your law professor most likely state has transpired with respect to the contract between these parties?

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Quizplus · Accepted Answer

Novation is a type of contract where all parties involved agree to substitute one party or obligation for another. In this scenario, the original contract between Albert's corporation and the other party was essentially canceled and a new contract was established under the new name of the corporation. This would be considered a novation. Amendments typically change specific terms of the original contract, while substitution involves replacing one contract with a new one altogether. Assignment involves transferring rights or duties under a contract to a third party.

Albert Entered into a Contract Under the Name of One