Multiple choice

Novation of a contract means

  1. the renewal of original contract

  2. substitution of a new contract in place of original contract

  3. cancellation of contract

  4. alteration of contract

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

Novation of contract means the substitution of a new contract for an old one. The new agreement extinguishes the rights and obligations that were in effect under the old agreement.