Which of the Below Is an Example of a Novation

question 101

Multiple Choice

Which of the below is an example of a novation? ​ ​

• A)Art and Burt agree to terminate their supply contract.
• B)Art and Burt enter into an agreement supported by consideration wherein Art agrees to pay a debt Burt owes Carstairs.
• C)Art, Burt and Carstairs all agree that Burt will assume Art's rights and duties in a contract between Art and Carstairs.
• D)All of the above are examples of a novation.

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Definitions:

Perfectly Competitive Markets

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and easy entry and exit from the market.

Non-Price Competition

Non-Price Competition involves businesses trying to win over customers through quality, service, and other factors, not including price.

Profit-Maximizing Price

The price at which a firm can generate the maximum possible profit for its product or service, balancing between sales volume and profit margin.

Graph

A visual representation of data designed to show the relationship between two or more variables.