R5 Flashcards
1
Q
What is novation
A
Occurs when the parties to a contract agree to replace one party to the contract with a new party. The parties agree to release or discharge the old party and look only to the new party for performance.
2
Q
What is the accord and satisfaction
A
An accord is an agreement to substitute one contractual obligation for another. Satisfaction is the performance of the accord. The original contractual duties are not discharged until the accord is satisfied.
