Definition

1. Noun:
   • A legal substitution: In law, a "novation" is the act of replacing an old obligation with a new one. This requires the agreement of all parties involved. Typically, it involves replacing one of the original parties to a contract with a new party, with the consent of the other original party.

Usage Examples

• Noun:
  • The contract was amended through a novation, transferring all rights and duties to the new company.
  • A novation requires the consent of all three parties: the outgoing party, the incoming party, and the remaining party.

Advanced Usage

• "To effect a novation": To successfully complete the legal process of novation.
  • The lawyers were instructed to effect a novation of the lease agreement.

Variants and Related Words

• Novate (verb): To replace an old obligation with a new one by agreement.
  • The parties agreed to novate the original contract.

Synonyms

• Substitution: The act of replacing one thing with another.
• Replacement: The action of taking the place of something or someone else.

Different Meanings

• This term is highly specialized and is used almost exclusively in legal and contractual contexts. It does not have common non-legal meanings.

Related Idioms or Phrases

Noun

1. (law) the replacement of one obligation by another by mutual agreement of both parties; usually the replacement of one of the original parties to a contract with the consent of the remaining party