Which of the Following Statements About a Novation Is False

question 82

Multiple Choice

Which of the following statements about a novation is false?

• A)A novation is a type of substitute contract.
• B)Under a novation,the original obligor has no further obligation under the contract.
• C)A novation only requires the obligee's consent to having the delegatee perform the duties.
• D)Under a novation,the obligee has the right to look to the new obligor for fulfillment of the contract.

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Definitions:

Common Stock

A type of equity security representing ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Shares Outstanding

This key term represents the aggregate number of issued shares of a corporation held by investors, including restricted shares owned by the company’s officers and insiders.

Reverse Stock Split

A corporate action that reduces the number of a company's outstanding shares and increases the share price proportionately.

Shares Outstanding

The cumulative amount of shares of a company presently held by all shareholders, encompassing large quantities owned by institutional investors and private shares held by company insiders.