Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is
A) a mutual agreement to rescind.
B) an accord and satisfaction.
C) a novation.
D) a settlement agreement.

Question

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is​
A) ​a mutual agreement to rescind.
B) ​an accord and satisfaction.
C) ​a novation.
D) ​a settlement agreement.

Quizplus · Accepted Answer

This is a novation, as Gliding Light is being replaced by High Riders Inc. and assuming all of its rights and duties under the contract. This requires the consent of all parties involved, and results in the discharge of Gliding Light from their obligations under the contract.