Barb and Conrad are parties to a contract. They agree on a novation. The novation requires
A) the existence of a previous, valid obligation.
B) consideration greater than $5,000.
C) performance of the original contract by all of the parties.
D) an accord and satisfaction.

Question

Quizplus · Accepted Answer

A novation requires the existence of a previous, valid obligation, as it involves replacing an old contract with a new one, with the consent of all parties involved.

Barb and Conrad Are Parties to a Contract