Novation
/ˌnoʊˈveɪʃən/
Definitions
- (n.) The act of replacing an existing contract with a new one, transferring rights and obligations to a new party.
The parties agreed to a novation to substitute the original contractor with a new one.
Forms
- novations
Related terms
Commentary
Novation extinguishes the original contract and creates a new one, unlike assignment which transfers rights but not obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.