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What is novation of a contract under section 62 of the Indian Contract Act, 1872?

Novation occurs when the parties agree to substitute a new contract for the original. Under section 62, the original contract then need not be performed. The section…

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What is novation of a contract under section 62 of the Indian Contract Act, 1872?

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Correct answer B

Novation occurs when the parties agree to substitute a new contract for the original. Under section 62, the original contract then need not be performed. The section separately recognizes rescission and alteration.

Option feedback

Option A

Renewal without replacement does not substitute a new contract for the original.

Option B

An agreed replacement of the old contract is novation.

Option C

Cancellation without replacement is rescission.

Option D

Amending terms while retaining the contract is alteration.

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