Section 7.21 Cancellation and Novation

• Library: Contracts 2016 Supp

10. (§7.21) Cancellation and Novation

A contract can be cancelled by one party rescinding the contract (based on fraud, mistake, or material breach), by the terms of
the agreement itself, or on mutual consent of the parties. MFA Mut. Ins. Co. v. Sw. Baptist Coll., Inc., 381 S.W.2d 797, 801 (Mo. 1964). Novation is the substitution of a new contract for an old one that is, thereby, extinguished. Moley v. Plaza Props., Inc., 549 S.W.2d 633, 635 (Mo. App. W.D. 1977). Although cancellation and novation are not...