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      Question

      Substitution of old contract with new one______?

      A Is bad in law Correct Answer Incorrect Answer
      B Is erroneaous but lawful Correct Answer Incorrect Answer
      C Is novation of contract Correct Answer Incorrect Answer
      D Is merger Correct Answer Incorrect Answer
      E Is assisgnment. Correct Answer Incorrect Answer

      Solution

      As per s.62.of Contract Act, 1872. Effect of novation, rescission, and alteration of contract.โ€”If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed. โ€”If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed."

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