Which of the Following Is True About the Similarities and Differences

question 90

Multiple Choice

Which of the following is true about the similarities and differences between a substituted contract and a novation?

• A) A novation must be in writing but a substituted contract does not need to be.
• B) Neither will discharge duties under the original contract until the new contract is performed.
• C) A novation involves a new party,and a substituted contract is between the parties to the original contract.
• D) There is no difference because these are two terms to describe the same kind of contract.
• E) Both of these involve a new party who was not part of the original contract.

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Definitions:

SUTA Tax

The State Unemployment Tax Act tax, a payroll tax that employers pay to fund the state's unemployment insurance.

Payroll Data

Information related to employees' salaries, wages, bonuses, and deductions, essential for processing payroll and ensuring accurate financial records.

Gross Earnings

The total income earned by an individual or business before any deductions like taxes or expenses are subtracted.

Sales Taxes Payable

Liabilities for sales taxes collected from customers on behalf of governmental authorities, which are to be remitted to those authorities.