A Novation Does Not Require the Extinguishing of the Old

question 25

True/False

A novation does not require the extinguishing of the old obligation.

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Definitions:

Interest Rates

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Swiss Franc

The official currency of Switzerland and Liechtenstein, known for its stability and as a safe-haven currency.

Depreciate

A decrease in the value of an asset over time, often due to wear and tear or obsolescence.

Dollar-Pound Exchange Rate

The rate at which the currency of the United States can be exchanged for the currency of the United Kingdom.