Sisters Sheila and Vickie entered into a contract together to buy a vacation property. The sisters get into a dispute, and Vickie no longer wants any part of the deal. Sheila is in agreement with this idea, and talks her younger brother Joe into replacing Vickie on the contract. Sheila, Joe, Vickie and the seller agree to the substitution. Of what is this an example?

Assignment involves transferring rights or benefits from one party to another, but does not release the original party from their obligations. In this case, Vickie is being replaced entirely rather than merely assigning her rights, which is why this situation exemplifies novation instead of an assignment.

Fraud refers to deception intended to secure unfair or unlawful gain. There is no indication in the scenario that any party is acting dishonestly or with intent to deceive regarding the contract. Thus, this choice does not apply to the circumstances described.

Mutual mistake occurs when both parties to a contract are mistaken about a fundamental fact, leading to an agreement that cannot be executed as intended. In this case, the sisters' decision to replace Vickie with Joe does not stem from a mistake but rather from a mutual agreement to alter the contract, making this choice incorrect.