Instead of canceling their contract, William, Laverne, and Laverne's mother, Irma, form another contract in which they all agree that William will paint Irma's home instead of Laverne's. This new agreement is known as:

a. a breach of contract.

b. substantial performance.

c. a reformation.

d. a novation.

As I understand, it's one of the last two. Probably a novation,

Question

Business

Gianni Sharp

7 February, 01:08

Instead of canceling their contract, William, Laverne, and Laverne's mother, Irma, form another contract in which they all agree that William will paint Irma's home instead of Laverne's. This new agreement is known as:

a. a breach of contract.

b. substantial performance.

c. a reformation.

d. a novation.

As I understand, it's one of the last two. Probably a novation,

+4

Answers (2)

Know the Answer?

Lilian Erickson · Answer 1

yes it is novation

Harrison Melendez · Answer 2

"D"

Explanation:

Novation is a term used in contract to describe a situation where the contractual rights and obligations of one party is transferred to the other party with the agreement of all parties involved.

It signifies the end of the initial contract and the commencement of a new one. It is either in writing or substantiated by the acts and conducts of the party.

It may come in different types as listed

No new person or parties involved Requiring the intervention of a new party for the debtor A new person taking over.