A Novation Occurs

question 51

Multiple Choice

A novation occurs

• A) when two parties agree to terminate a contract and substitute a new contract.
• B) when a contract is amended by agreement between the parties.
• C) when a novel or new situation arises and the terms of a contract are changed.
• D) when a stranger to the contract is permitted to obtain rights under the contract.
• E) when a stranger to a contract enters into a new agreement with the parties that permits him or her to obtain rights under the original contract.

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Definitions:

Typewriter

A mechanical or electromechanical device used for typing characters onto a medium, usually paper, by means of a keyboard striking an ink-coated ribbon.

Consideration

The value (such as money, a service, or a promise) that is given by one party to another in exchange for performing or promising to perform a certain act.

Stereo Speakers

Audio devices designed to reproduce sound with a sense of spatial depth and positioning, creating a stereo effect by having multiple components that output various channels of audio.

Consideration

Consideration is a legal term that refers to something of value promised to another when making a contract, and it is a necessary element for the contract to be enforceable.