Correct option is D
Under
Section 62 of the Indian Contract Act,
Novation occurs when a new contract replaces an old one, altering the nature of liability. It discharges the original contract and creates a new one.
Information Booster:
Novation involves a complete substitution of a new contract, either between the same or different parties, with different obligations or liabilities.
Additional Information:
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Option (a) Rescission: Refers to canceling or terminating a contract.
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Option (b) Renovation: This term does not apply in contract law.
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Option (c) Alteration: Involves changes to the terms of the contract, but it doesn’t substitute the entire agreement like novation.
