A(n)________ occurs when parties,by mutual agreement,discharge a valid existing obligation by the substitution of a new valid obligation on the part of the debtor or another.
A)adoption
B)novation
C)ratification
D)automatic novation

Question

Quizplus · Accepted Answer

A novation is a mutual agreement,between all parties concerned,for the discharge of a valid existing obligation by the substitution of a new valid obligation on the part of the debtor or another,or a like agreement for the discharge of a debtor to his or her creditor by the substitution of a new creditor.

A(n)________ Occurs When Parties,by Mutual Agreement,discharge a Valid Existing Obligation