Asked by sunil singh on Jun 28, 2024

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A(n) __________ is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee.

A) assignment
B) delegation
C) partial assignment
D) novation

Novation

The act of replacing an obligation to perform with a new obligation or replacing a party to an agreement with a new party.

Discharging Contract

Discharging a contract refers to the process by which parties are released from their obligations under the contract, for reasons such as fulfillment of the contract terms, mutual agreement, or impossibility of performance.

Third Party

An entity that is not directly involved in a transaction or agreement but may be affected by it or have an interest in it.

  • Describe the effects of assignment and delegation on the rights and duties of the parties involved.
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TT
Terry ThompsonJun 30, 2024
Final Answer :
D
Explanation :
Novation is a method of discharging a contract in which a third party becomes bound upon a promise to the obligee. In novation, the original party is released from their obligation and a new party takes their place. This requires the agreement of all parties involved. Assignment involves transferring the rights or benefits of a contract to a third party, but the original party remains obligated. Delegation involves transferring the duties or obligations of a contract to a third party, but the original party remains liable. Partial assignment involves transferring only a portion of the rights or benefits of a contract to a third party.