Liz,a promoter,hired an office support staff for a corporation that had not yet been incorporated.If there is a novation clause in a subsequent contract with the corporation and the staff,which of these is correct?

Question

Quizplus · Accepted Answer

A novation clause in a contract essentially replaces one party with another or one obligation with another, releasing the former party from their obligations. In this context, if there is a novation clause in the subsequent contract between the corporation and the office support staff, it means that the corporation agrees to take over the obligations initially undertaken by Liz. As a result, Liz would be released from her potential liabilities under the contracts she entered into before the corporation was incorporated.

Liz,a Promoter,hired an Office Support Staff for a Corporation That