A Novation Occurs When Two Parties Agree to Terminate a Contract

question 18

True/False

A novation occurs when two parties agree to terminate a contract and substitute a new contract.

---

Definitions:

Upsloping Line

In economics, represents a graph where the value or quantity increases as another variable increases, often seen in supply curves.

ATC Curves

Graphs that depict the average total costs of production at different levels of output, illustrating economies or diseconomies of scale.

Purely Competitive

A market structure characterized by a large number of sellers offering identical products, where no single seller can influence market prices.

Marginal Revenue

The extra income a company earns by selling an additional unit of a product or service.