New Enroll in RBI Grade B New Batch - Starts on May 21

    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.—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. —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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