novation

[noh-vey-shuhn]

novation Definition

the act of replacing an obligation to perform with a new obligation, or of replacing a party to an agreement with a new party.

Using novation: Examples

Take a moment to familiarize yourself with how "novation" can be used in various situations through the following examples!

• Example

  The novation of the contract was necessary after the merger.

• Example

  The novation agreement transferred all rights and obligations from the original borrower to the new borrower.

• Example

  The novation of the loan agreement required the approval of all parties involved.

novation Synonyms and Antonyms

Synonyms for novation

• replacement
• substitution
• exchange

Phrases with novation

• novation agreement

  a legal document that replaces one party to a contract with another party

  Example

  The novation agreement transferred all rights and obligations from the original borrower to the new borrower.

• novation of contract

  the process of replacing an existing contract with a new contract that has different terms or parties

  Example

  The novation of the contract was necessary after the merger.

• novation of debt

  the process of transferring a debt obligation from one party to another party

  Example

  The novation of the loan agreement required the approval of all parties involved.

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Summary: novation in Brief

The term 'novation' [noh-vey-shuhn] refers to the act of replacing an obligation to perform with a new obligation, or of replacing a party to an agreement with a new party. It is often used in legal contexts, such as 'The novation of the contract was necessary after the merger.' 'Novation' extends into phrases like 'novation agreement,' and has formal synonyms like 'replacement' and 'substitution.'