A Novation Occurs When There Is a Substitution, by Agreement

question 20

True/False

A novation occurs when there is a substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.

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Definitions:

Severe Injuries

Substantial physical harm or damage to a person's body that requires medical attention and may lead to long-term or permanent disability.

Misrepresentations

False or misleading statements that can render a contract void or voidable if relied upon by the aggrieved party.

Principal

The primary party or individual involved in a contract or agreement, often responsible for the obligations and benefits of the contract.

Authorized Transactions

Transactions that are approved or processed, especially in the context of financial dealings or other formal agreements.