ContractsContract_assignment_and_novationMEDIUM
In a novation, what happens to the original obligor's liability under the contract?
Correct Answer
B) It is extinguished because all parties agreed to the substitution
In a novation, the original obligor is released from liability because all parties consent to the substitution of a new party.
Answer Options
A
It is reduced by halfB
It is extinguished because all parties agreed to the substitutionC
It continues indefinitelyD
It is suspended but can be revivedWhy This Is the Correct Answer
Sign up free to unlock full analysis
Why the Other Options Are Wrong
Sign up free to unlock full analysis
Deep Analysis of This Contracts Question
Sign up free to unlock full analysis
Background Knowledge for Contracts
Sign up free to unlock full analysis
Sign up free to unlock full analysis
Real World Application in Contracts
Sign up free to unlock full analysis
Common Mistakes to Avoid on Contracts Questions
Sign up free to unlock full analysis
Related Topics & Key Terms
Key Terms:
contract_assignment_and_novationcontractsnovationrelease
Was this explanation helpful?
More Contracts Questions
Under Indiana's Statute of Frauds, real estate contracts must be:
In June 2026, Riley Monroe receives a counteroffer and asks what generally happens to the original offer. What is the most accurate answer under current Illinois rules?
Earnest money (down payment) in NY is typically held by:
A contract formed for an illegal purpose is considered:
Specific performance in North Dakota:
- → In a real estate contract, liquidated damages refers to damages that are:
- → Sawyer Iverson is reviewing an Illinois issue in Joliet. The person assumes that attorney review automatically replaces every inspection, appraisal, or financing deadline in a standard Illinois residential contract. Which statement best applies?
- → Avery Jenkins is reviewing an Illinois issue in Normal. The person asks what happens if neither attorney sends a disapproval or proposed change during the standard review period. Which statement best applies?
- → Which statement best describes the significance of flood zone disclosure in Arkansas real estate transactions?
- → Liquidated damages in a real estate contract refer to:
- → Earnest money in West Virginia must be:
- → A bilateral contract in real estate is best described as:
- → A contract where one party uses threats to force the other party to sign is considered:
- → Washington's standard real estate forms are provided by:
- → In Massachusetts, the purchase and sale agreement is typically signed: