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:

Debt

Debt is an amount of money borrowed by one party from another, under the condition that it is to be repaid at a later date, usually with interest.

Restrictive Covenants

Provisions in a contract or bond agreement that limit certain actions of the borrower, to protect the interests of the lender.

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.

Personal Taxes

Taxes imposed on individuals or households based on their income, investments, or other personal activities.