the substitution of one legal obligation for another, usually by replacing one of the contracting parties After novation, the company assumed liability for the contracts entered into by Ranger Ltd.
- The novation did not constitute a release of obligations.
- Unlike novation, assignment involves the transfer of property.
- the finalization of any novation
- novation agreement
- to create a new contract by novation
- Ratification, adoption, and novation have similar, but not identical meanings in contract law. Adoption of a contract is accepting it as your own, where it was entered into by someone acting for you. Ratification differs in that the contract was entered by someone who lacked authority to act for you. A novation is the replacement of an existing obligation with a new one.
- The verb novate is rare.