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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