Lon has just come home from serving in the Marines and contracts with a local car dealership to purchase a car. The car must be ordered, and payment is to be made when the car arrives. The next day, Lon receives orders to return to active duty. Realizing that he doesn't need the car, he brings Tony to the dealership and asks that Tony substitute for him. Tony will take delivery and ownership of the car, and Tony will pay the dealership upon delivery. The dealership agrees to have Tony substitute for Lon. What has occurred?
A) An assignment.
B) A novation.
C) A delegation.
D) An accord and satisfaction.

The correct answer is b) A novation.

Explanation:

The novation refers to the transfer of obligations legally from one person to another while everyone involved agrees.

For example, in the case of Lon, he had a contract with the dealer but then Lon has difficulties because of his work and cannot continue with the purchase of the car, so he takes Tony to the dealer who replaces him, who will take care of The responsibilities regarding the payment and everything of the vehicle when the dealership accepts that Tony replaces Lon, a novation takes place since Lon's responsibilities with the dealership pass to Tony by mutual agreement of all the parties involved.

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