alleryStart learning →A, B and C agree B will accept C as debtor in place of A. Effect?
AA stays liable to B
BA and C both stay liable
CA's debt ends, C's begins
DThe agreement is void
Answer & Solution
Correct answer: C. A's debt ends, C's begins
The three-party substitution is novation, extinguishing A's debt and creating a new one from C.
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