Multiple choice

When the parties to the contract agree to substitute the existing contract with new contract, it is called

  1. Alteration in 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

Novation refers to the substitution of an existing contract with a new contract, either between the same parties or different parties, thereby discharging the original obligation. Alteration involves changing terms while keeping the contract alive, and rescission involves cancellation.