Discharge by Novation and Rescission

Discharge by novation occurs when a party to a contract is replaced by a new party, with the agreement of all involved. This means that the original party is relieved from their obligations. On the other hand, discharge by rescission happens when all parties agree to cancel the contract altogether, returning them to their pre-contractual positions. Both methods effectively end the original contractual obligations, but novation substitutes one party for another, while rescission nullifies the contract entirely.