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What distinguishes novation from a further agreement that leaves the original contract in force under…

Section 62 of the Indian Contract Act, 1872 provides that when the parties agree to substitute a new contract for the original, the original contract need not be performed.…

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What distinguishes novation from a further agreement that leaves the original contract in force under section 62 of the Indian Contract Act, 1872?

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Correct answer B

Section 62 of the Indian Contract Act, 1872 provides that when the parties agree to substitute a new contract for the original, the original contract need not be performed. This agreed replacement is the essential feature of novation.

Option feedback

Option A

Section 62 requires the parties' agreement to substitute a contract. A unilateral announcement does not accomplish novation.

Option B

An agreed substitution discharges the obligation to perform the original contract under section 62.

Option C

Keeping the original contract enforceable alongside the new contract is inconsistent with substitution.

Option D

Novation presupposes an original contractual obligation to replace. A void agreement is not a prerequisite.

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