Lisa and Mandy have a contract. Mandy wants out of the contract; Carla Sue is willing to take Mandy's place, which is satisfactory with Lisa. When the Carla Sue for Mandy exchange is made, this is known as:

Question

Quizplus · Accepted Answer

Novation is the substitution of a new contract for an old one. In this case, the old contract between Lisa and Mandy is replaced by a new contract between Lisa and Carla Sue.

Lisa and Mandy Have a Contract