Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This novation does not require
A) the existence of a previous, valid obligation.
B) the agreement by all of the parties to the new contract.
C) performance of the original contract by all of the parties.
D) a new, valid contract.

Question

Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This novation does not require
A) ​the existence of a previous, valid obligation.
B) ​the agreement by all of the parties to the new contract.
C) ​performance of the original contract by all of the parties.
D) ​a new, valid contract.

Quizplus · Accepted Answer

A novation requires a previous valid obligation, agreement by all parties, and a new valid contract, but it does not require performance of the original contract by all parties.

Leah and Mason Are Parties to a Contract for the Sale