Question: Brown and Jones had a five-year contract. After two years, they agree to tear up this contract and replace it with a new ten-year contract. This would be called:

Written by Posted On Thursday, 23 January 2020 05:00

(A) Joinder of action
(B) Novation
(C) Partition action
(D) None of these

 

Answer:  (B)  Novation is the substitution of a new agreement for an existing agreement, with intent to extinguish the latter.

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