Contracts, 12% of the examination
Novation
Substituting a new party or a new obligation, releasing the original party from liability.
Novation requires the consent of everyone involved. Assignment transfers rights but leaves the assignor secondarily liable unless expressly released, and that difference in continuing liability is what most questions on this pair are testing.
See it in a question
One question from Contracts, so the term lands in the context the exam uses it in.
Contracts ยท 12%Offers/Purchase Contracts
A seller receives an offer and returns it signed, having changed the closing date. What has the seller legally done?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.