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Question 1

What is a novation?

Answer 1

Three party transaction involving the original parties to the contract plus a newcomer. They all agree that one of the original parties will be removed and the newcomer substituted in his place. Needs a previous obligation, mutual agreement of all parties, and intention to extinguish the duties of the old contract. Original party is discharged and has no further rights or liabilities

Question 2

What is an account stated?

Answer 2

Transactions between a debtor and a creditor that create mature debts and the parties compute a balance where the promisor promises to pay and the creditor promises to accept in full payment of the account. New contract.
- if creditor sends an itemized list to debtor who doesn’t object to it in a reasonable time, that is a rebuttable inference of assent