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Questions and Answers
What is the dual function of novation?
What is the dual function of novation?
- Extinguish or modify an existing obligation, and substitute a new one in its place (correct)
- Substitute the person of the debtor and change the object of the obligation
- Operate as an absolute extinction of an obligation and modify the first
- Create a new obligation and completely extinguish the existing one
What does novation involve?
What does novation involve?
- Substituting the person of the debtor
- Subrogating a third person in the rights of the creditor
- Changing the object or principal conditions of an obligation
- All of the above (correct)
How is novation defined?
How is novation defined?
- The substitution or change of an obligation by another (correct)
- The absolute extinction of an obligation
- The partial extinction of an obligation
- The creation of a new obligation without modifying the existing one
What is the effect of novation on the existing obligation?
What is the effect of novation on the existing obligation?
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In what ways can obligations be modified through novation?
In what ways can obligations be modified through novation?
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Study Notes
Novation: Definition and Effects
- Novation is a contract modification process that involves the substitution of a new contract for an existing one, either partially or entirely.
- Novation has a dual function: it extinguishes the original obligation and creates a new one, with the same or different parties, rights, and obligations.
Definition of Novation
- Novation is defined as the process of replacing an existing contract with a new one, which may involve changes to the parties, terms, or obligations.
Effect of Novation on Existing Obligation
- Novation has the effect of discharging or extinguishing the existing obligation, and a new obligation arises from the new contract.
Modification of Obligations through Novation
- Obligations can be modified through novation in several ways, including:
- Changing the parties involved
- Altering the terms and conditions
- Replacing the original obligation with a new one
- Modifying the rights and obligations of the parties
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Test your knowledge of novation in contract law with this quiz. Explore the concept of novation, its meaning, and the ways in which obligations can be modified.
