Question

A Contract is discharged by novation which means the

• A. Cancellation of the existing contract
• B. Change in one or more terms of the contract
• C. Substitution of existing contract for a new one
• D. None of the above

Hint:

Novation (Sec. 62) = new contract replaces old.

Answer 1

The Correct Option is C

Novation under Section 62 of the Indian Contract Act involves substituting an existing contract with a new one, discharging the original.
\[ \boxed{\text{Substitution of existing contract for a new one}} \]