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A novation in West Virginia real estate:
Correct Answer
B) Substitutes a new party and releases the original party from all obligations
A novation substitutes a new party for the original party, completely releasing the original party from liability. Unlike an assignment, a novation requires consent of all parties and creates an entirely new contractual relationship.
Answer Options
A
Only transfers rights, not obligationsB
Substitutes a new party and releases the original party from all obligationsC
Is the same as an assignmentD
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Related Topics & Key Terms
Related Topics:
assignmentparty-substitutionrelease-of-liability
Key Terms:
novationsubstitutionreleaseall consent
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