ContractsContract_assignment_and_novationMEDIUM
A borrower wants to transfer a mortgage to a new buyer. The lender agrees to release the original borrower and substitute the new buyer. What has occurred?
Correct Answer
B) Novation
Novation occurs because all parties (lender, original borrower, new borrower) agree to substitute the new party and release the original borrower.
Answer Options
A
AssignmentB
NovationC
DelegationD
Loan assumption without releaseWhy This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
contract_assignment_and_novationcontractsnovationmortgage_transfer
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