The Creation of a New Contract Through the Substitution of a Third

question 173

Short Answer

The creation of a new contract through the substitution of a third party for one of the original parties to a contract, with consent by all, is known as ________.

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Definitions:

Articles of Incorporation

Legal documents filed with a government body to legally document the creation of a corporation.

Par Value

The nominal or face value assigned to a share of stock or a bond by the corporation issuing it, important in legal and accounting contexts but not necessarily related to market value.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, making them more affordable to small investors.

Shares

Shares represent units of ownership interest in a corporation or financial asset, providing shareholders with a proportion of the company's profits and a claim on assets.