2006-08-05 18:54:49 · 4 answers · asked by april_murcia 1 in Politics & Government ➔ Law & Ethics
Hi!
Novation is the term used to describe the substitution of a new contract for a former (current) contract. These are commonly seen with respects to bankruptcies, where a lender may be willing to exchange the terms of their current contract with a bankrupty borrower for a contract that provides them SOME payments rather than none as a result of the bankruptcy.
The effect of a novation is that the current contract's obligations are "extinguished" as a result of the formation of and agreement on the terms of the new contract.
Good luck!
2006-08-06 01:20:19 · answer #1 · answered by negotiator 2 · 0⤊ 0⤋
A novation is the agreement to renew an obligation. Gold v. Weissman, (2004) 114 Cal.App.4th 1195, 8 Cal.Rptr.3d 480
2006-08-05 21:21:16 · answer #2 · answered by mattapan26 7 · 0⤊ 0⤋
You may want to do your own homework, rather than relying on someone else to do the research for you.
In the long run, it's going to be much more useful to you.
2006-08-06 07:54:51 · answer #3 · answered by coragryph 7 · 0⤊ 0⤋
you must be taking a test!! LMAO!!
thanks for the 2 points!
2006-08-11 04:35:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋