Shannon and Rene are sisters who enter into a contract to buy an income property. The sisters get into a dispute, and Shannon wa

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3 years ago

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Shannon and Rene are sisters who enter into a contract to buy an income property. The sisters get into a dispute, and Shannon wa

nts out of the deal. However, their uncle Jerry wants to replace Shannon on the contract. Shannon agrees to the substitution so they go ahead and do it. This is an example of ________.

Business

1 answer:

Citrus2011 [14] · Answer 1 · 2022-03-19T12:37:46+03:00

Answer:

Novation.

Explanation:

In this scenario, Shannon and Rene are sisters who enter into a contract to buy an income property. The sisters get into a dispute, and Shannon wants out of the deal. However, their uncle Jerry wants to replace Shannon on the contract. Shannon agrees to the substitution so they go ahead and do it. This is an example of novation.

Novation can be defined as the process or an act of legally replacing a party in a contract with another, adding an obligation to engage or replacing a contractual obligation to perform with another based on the consent of all involved parties.