Which of the Following Occurs When the Parties to the Agreement

question 63

Multiple Choice

Which of the following occurs when the parties to the agreement wish to replace one of the parties with a third party?

• A) Accord and satisfaction
• B) Novation
• C) Substituted contract
• D) Mutual rescission
• E) Alteration

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Definitions:

Living Trust

A legal document that places assets into a trust for the grantor's benefit during their lifetime and specifies how to distribute remaining assets after the grantor's death.

Resulting Trust

A trust formed by implication of law when property is transferred under circumstances suggesting the transferor does not intend the transferee to have beneficial interest in the property.

Revocable Living Trust

A legal document that allows an individual to control their assets during their lifetime and specify how these assets are distributed upon their death. It can be altered or revoked.

Constructive Trust

An equitable remedy imposed by a court to rectify situations where injustice would otherwise occur due to wrongful possession of property.