📜 BAR Exam Prep

Novation differs from delegation in that:

A They are identical
B A novation completely substitutes a new party and releases the original obligor from liability
C Delegation requires court approval
D Novation only applies to leases

✓ Correct Answer: Option B

Novation: all original parties agree to substitute a new party, releasing the original obligor. Delegation: original obligor remains liable even after delegating performance.

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