Chela and Anoop were partners in a music business. Chela played the drums and sang the lead and Anoop created the music and played the guitar. Chela entered into a contract with Cynthia Insurance Co. (CIC) to purchase life insurance with Anoop as beneficiary. The insurance policy covered $200,000 per injury caused by a vehicle accident and a maximum of $500,000 to ensure Chelas life. Answer the following questions in your own words. Be sure to include the textbook page or section number in your answers. And if you used outside resources, please cite the title, author and URL of the source.

1. Using Third Party Diagram below, identify the parties with one of the labels (A, B, and C) Chela, CIC and Anoop and explain their relationship to the life insurance contract.

2. Identify the type of third party contract this would be and explain why you determined that it was that type of contract.

3. Explain what you would do to the diagram so that the new contract would be characterized as a novation.