Which contract event permits substitution of one party with a new party?

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Multiple Choice

Which contract event permits substitution of one party with a new party?

Explanation:
Substitution of a party with a new party is achieved when the current contract is terminated and a new agreement is formed that names the substitute in place of the original party. This is a novation, where the old contract ends for the parties involved and a fresh contract begins with the new party taking on the rights and duties. The other events don’t provide that mechanism: destroying the subject matter ends the contract’s purpose; bankruptcy can shift control to a trustee but doesn’t automatically substitute a party in the contract; and the statute of limitations only sets a deadline to sue and does not alter who is bound by the contract.

Substitution of a party with a new party is achieved when the current contract is terminated and a new agreement is formed that names the substitute in place of the original party. This is a novation, where the old contract ends for the parties involved and a fresh contract begins with the new party taking on the rights and duties. The other events don’t provide that mechanism: destroying the subject matter ends the contract’s purpose; bankruptcy can shift control to a trustee but doesn’t automatically substitute a party in the contract; and the statute of limitations only sets a deadline to sue and does not alter who is bound by the contract.

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