Which of the following best represents an example of novation?

Novation involves the replacement of an existing contract with a new one, which effectively transfers the rights and obligations of the original party to the new party. In this context, if one party in a contract is replaced with another party, creating a new contract that releases the original party from its obligations, this characterization aligns with the principle of novation.

In contrast, simply changing the terms of a lease agreement pertains more to amending a contract rather than creating a new legal agreement that releases the parties from the original one. Similarly, rescinding a contract due to fraud involves canceling the contract due to deceptive practices, but it doesn't involve replacing the contract with a new one. Amending an existing contract only modifies certain aspects while keeping the overall agreement intact rather than establishing a completely new legal relationship, which is a key characteristic of novation.