If a new contract is substituted in place of an existing contract between the same is called*AlterationRecessionNovationWaiver

Break Down the Problem

1. Identify the terms provided in the question: Alteration, Rescission, Novation, Waiver.
2. Understand what each term means in the context of contracts.
3. Determine which term fits the definition given in the question.

Relevant Concepts

1. Alteration: Modifying the terms of an existing contract.
2. Rescission: Cancelling a contract altogether.
3. Novation: Replacing an existing contract with a new one, transferring obligations.
4. Waiver: Choosing not to enforce a right or claim within a contract.

Analysis and Detail

• Alteration does not completely replace the contract; it only changes some terms.
• Rescission implies the original contract is voided, but it does not imply substitution.
• Waiver refers only to the relinquishing of a right within the current agreement.

Novation specifically involves the creation of a new contract while terminating the original one, which fits the description of the new contract being substituted in place of an existing one.

Verify and Summarize

After examining each term, it is clear that Novation is the correct answer, as it involves substituting an existing contract with a new one.

Final Answer

Novation is the term that describes substituting a new contract in place of an existing contract.