If the parties to a contract put a new agreement in place of their original agreement,it is called a(n) ________.

A) accord and satisfaction
B) novation
C) substituted contract
D) mutual rescission
E) subrogation

Novation

In a contract, the substitution of a third party for one of the original parties; the duties remain the same under the contract, but one original party is discharged and the third party takes that original party’s place.

Substituted Contract

An agreement between the contracting parties to replace an existing contract with a new one, possibly altering terms or obligations.