X owes Rs 10 000 to Y under a contract It is agreed between X Y amp Z that Y shall henceforth accept...........

Indian Contract Act (ICA)1872 Formation of Contract

X owes Rs. 10,000 to Y under a contract. It is agreed between X, Y & Z that Y shall henceforth accept Z as his debtor instead of X for the same amount. Old debt of X is discharged and a new debt from Z to Y is contracted. This is:

Alteration of contract

Rescission of contract

Novation of contract

Change in contract

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Explanation:

- Novation of contract (): This is when an old contract is replaced with a new one. Here, X is replaced by Z as the debtor, creating a new agreement between Y and Z. The original debt is discharged.

- Alteration of contract: This involves changes to the terms of an existing contract. The original parties remain the same, which is not applicable here.

- Rescission of contract: This is the cancelation of a contract, freeing all parties from obligation. It doesn't involve forming a new contract as in this case.

- Change in contract: This term is vague and generally refers to any modification but doesn't precisely describe the action taken here.