Contracts
Novation
A concise definition for the California Real Estate Exam study guide.
Definition
Substitution of a new party or obligation with the required agreement, which releases the original party or obligation. Requires agreement of all parties.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 3: Contracts, Offers, Contingencies & Remedies →