novation
What is the opposite of novation? Here is what we hold, with its meaning and related words.
Noun — The replacement of a contract, or of one of the parties to it, by a new agreement that all parties consent to, so that the original obligations are extinguished.
How to use novation
The word patterns that sound natural to a native speaker.
deed of novation
novation agreement
by way of novation
novation of the contract
Legal and financial vocabulary; rare in everyday speech.
Etymology
From Latin novatio, 'a renewing', from novare, 'to make new', from novus, 'new'.
Full origin of novation →Frequently asked questions
What is the difference between novation and assignment?
Assignment transfers only the benefits of a contract, and the original party remains liable for its obligations. Novation replaces the contract entirely, so the outgoing party is released, and it requires the agreement of everyone involved.
Does novation need everyone's consent?
Yes. Because it discharges the old contract and creates a new one, all original parties and the incoming party must agree. This is the main practical difference from assignment, which the other side often cannot refuse.
Is novation the same as an amendment?
No. An amendment changes terms within an existing contract, while novation ends that contract and substitutes a fresh one, usually to swap in a different party.
