Philip has a contract with his neighbor Jessica for lawn service. Philip can no longer mow due to ankle injury. Paul agrees to carry out the contract terms. Jessica must substitute Philip's name with Paul's. What is this?
Correct Answer
B) A novation
Novation is correct because all three essential elements are present: Philip (original party) is being released, Paul (new party) is stepping in, and Jessica (obligee) must consent by substituting the name — meaning she accepts the new party. Under California Civil Code §1530, a novation is the substitution of a new obligation for an existing one, and substituting a new party qualifies as a novation. Jessica's required consent is the defining feature that distinguishes this from a simple assignment.
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