The Substitution of an Old Contract for a New One

question 4

Multiple Choice

The substitution of an old contract for a new one that replaces an obligation or a party for another is a:

• A) novation.
• B) warranty.
• C) assignment.
• D) delegation of duties.

---

Definitions:

Full Faith

A clause in the U.S. Constitution (Full Faith and Credit Clause) requiring each state to recognize the public acts, records, and judicial proceedings of every other state.

Tenth Amendment

An amendment to the U.S. Constitution stating that the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Federal Government

The national government of the United States, composed of three branches: legislative, executive, and judicial.

Lower-Level Governments

Administrative divisions within a country that operate below the level of the central government, such as states or provinces.