Question

Two people entered into a long term real estate contract. After one year had elapsed, they decided to write a new contract replacing the old one. This would be an example of:

Answer 1

Writing a new contract to replace an old one is known as novation, which often occurs with long-term agreements like real estate contracts. Simplification of contract language, as encouraged by the Plain Writing Act of 2010, makes legal documents more accessible and understandable to the general public.

Step-by-step explanation:

When two people decide to write a new contract to replace an old one after a year, this is termed a novation. Novation is a legal concept where a new contract supersedes the old one, effectively canceling it and substituting it with the new agreement among the parties. This is a common practice in business and legal transactions, especially in situations like real estate contracts where the circumstances or the needs of the contracting parties might change over time.

In the context of simplifying legal language, it would benefit individuals entering into such contracts to have the terms laid out in a clear, concise, and understandable way. The Plain Writing Act of 2010 encourages this by ensuring that government documents are written in a plain and straightforward manner, making them accessible to the average person. Simplifying contractual language helps in reducing confusion and making the terms of the agreement more transparent.