Asked by Talyn Rhodes on Apr 29, 2024
Verified
If there is a novation, the original promisor's liability to the original promisee is relieved, even if the new promisor fails to perform.
Novation
Novation is the legal act of replacing an existing obligation with a new one, substituting a new party or obligation into an original contract.
Original Promisor
The individual or entity who initially makes a promise in a contractual agreement, especially in contexts involving subsequent assignments or transfers of obligations.
Original Promisee
The individual or entity to whom a promise or commitment is initially made in a contractual agreement.
- Recognize the legal provisions and impacts of substituted contracts, novations, and accord and satisfaction.
Verified Answer
JD
Jasleen DhillonApr 30, 2024
Final Answer :
True
Explanation :
In a novation, the original contract is replaced by a new one, releasing the original promisor from their obligations, regardless of whether the new promisor fails to perform.
Learning Objectives
- Recognize the legal provisions and impacts of substituted contracts, novations, and accord and satisfaction.