Extinguishment of obligation by Novation

Novation is the extinguishment of an obligation by the substitution or change of the obligation by a

subsequent one which extinguishes or modifies the first, either by changing the object or principal
conditions, or by substituting another in place of the debtor, or by subrogating a third person in the
rights

A typical example of novation in property law is when a tenant passes the lease over to another person
making him or her responsible for rent payments and any property damages according to the original
lease contract.

Contracts

Voidable Contract

What Is a Voidable Contract? A voidable contract is a formal agreement between two parties that may
be rendered unenforceable for any number of legal reasons, which may include: Failure by one or both
parties to disclose a material fact. A mistake, misrepresentation, or fraud. Undue influence or duress.

Some examples of contracts that are voidable are those that were entered under fraud, mistake, or
duress or contracts entered into with minors or persons of unsound mind. Voidable contracts are legally
binding on both parties until the innocent party seeks to rescind such contract.

a contract where two companies agree to fix prices is void because it violates antitrust laws, and a
contract to charge different prices for products depending on race or gender would be void because it
would violate laws against discrimination.