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Which of the following requires the parties to agree to replace an existing contract?

Novation under section 62 is a consensual substitution of a new contract. The obligation in section 70 and the finder's responsibilities in section 71 arise by operation of…

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Which of the following requires the parties to agree to replace an existing contract?

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Answer and explanation

Correct answer D

Novation under section 62 is a consensual substitution of a new contract. The obligation in section 70 and the finder's responsibilities in section 71 arise by operation of law.

Option feedback

Option A

Section 70 can impose compensation when the benefit is accepted. It does not require an agreement substituting a contract.

Option B

Section 71 imposes the responsibilities of a bailee on a finder who takes the goods into custody.

Option C

A quantum meruit claim for reasonable value can arise under section 70 when a lawful, non-gratuitous benefit is accepted. It does not require agreement to replace a contract.

Option D

Section 62 requires the parties to agree to substitute a new contract for the original.

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