Multiple choice

Rahul owes Rs. 10, 000 to Nakul under a contract. It is agreed between Rahul, Nakul and Bhim that Nakul shall henceforth accept Bhim as his debtor instead of Rahul for the same amount. Old debt of Rahul is discharged, and a new debt from Bhim to Nakul is contracted. This is a/an ______________.

  1. alteration of contract

  2. rescission of contract

  3. novation of contract

  4. all of the above

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A novation ordinarily arises when a new individual assumes an obligation to pay that is incurred by the original party to the contract.