Multiple choice

Novation of a contract under Indian Contract Act means

  1. Cancellation of contract

  2. Alteration of the contract

  3. The renewal of original contract

  4. Substitution of a new contract in place of original contract

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

Novation occurs when the parties to a contract agree to substitute a new contract for the original one, thereby discharging the original contract.