Which of the following occurs when the parties to the agreement wish to replace one of the parties with a third party?
A)Accord and satisfaction
B)Novation
C)Substituted contract
D)Mutual rescission
E)Abeyance

Question

Quizplus · Accepted Answer

Sometimes the parties to an agreement choose to replace one of the parties with a third party.This substitution of a party is called a novation.The original duties remain the same under the contract,but one party is discharged and the third party now takes the original party's place.All three parties must agree to the novation for it to be valid.

Which of the Following Occurs When the Parties to the Agreement