Novations
/ˌnoʊ.veɪˈʃənz/
Definitions
- (n.) The act of replacing an old contract with a new one, extinguishing the original obligation and creating a new one, often involving a change in parties or terms.
The parties agreed to novations to transfer the contract obligations to a third party.
- (n.) Plural form of novation, referring collectively to multiple instances of such contract replacements.
Several novations were executed during the merger to update all existing agreements.
Forms
- novation
Related terms
See also
Commentary
Novation requires consent of all parties and differs from assignment as it releases the original party from 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.