Novation Is the Term Used When a New Party Is

question 94

True/False

Novation is the term used when a new party is substituted for an original party to the contract.

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Definitions:

Local Small-claims Courts

Courts that handle minor civil disputes and claims typically involving small amounts of money, allowing parties to argue their cases without the need for lawyers.

Voluntary Petitions

A legal document filed by an individual or business entity declaring their intention to seek relief under bankruptcy laws.

Initiate Chapter 7

The process of starting a Chapter 7 bankruptcy filing, which involves the liquidation of a debtor's assets to pay off debts.

Chapter 11 Bankruptcies

A type of bankruptcy that involves the reorganization of a debtor's business affairs, debts, and assets.