A Novation Is Another Name for an Accord and Satisfaction

question 25

True/False

A novation is another name for an accord and satisfaction.

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Definitions:

Holder in Due Course

A party who has acquired a negotiable instrument in good faith and for consideration, and thus is protected against certain defenses if payment on the instrument is refused.

Negotiable Note

A financial instrument containing a promise to pay a specific amount of money, either on demand or at a set time, to the holder or assignee.

Legal Status

The standing or condition of an entity or individual in the eyes of the law, including rights, responsibilities, and current legal state.

Negligently

Acting with a lack of due care or failing to take proper care in doing something, which can lead to harm or damage.