(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
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novation::noun | Spocien Dictionary
| Type | Words |
|---|---|
| Type of | replacement, replacing |
| Derivation | novate |
Examples of novation
novation
This process of transferring the trade title to the clearing house is called novation.
From the en.wikipedia.org
But housing authorities are now bound by EU laws which make novation a far more complex business.
From the guardian.co.uk
Novation replaces the original party with a new party.
From the en.wikipedia.org
Novation is no less thorny.
From the economist.com
Novation contracts are the best way to be released from personal liability, but the timing of requesting the release is critical.
From the miamiherald.com
Buyers and sellers need to know promptly when the party on the other side of the trade changes, but they are being swamped, some with thousands of novation requests a day.
From the economist.com
- (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
- (novate) replace with something new, especially an old obligation by a new one
- Novation is a term used in contract law and business law to describe the act of either replacing an obligation to perform with a new obligation, or replacing a party to an agreement with a new party. ...
- The substitution of a new obligation for an old one; substitution of new parties to an existing obligation, as where the parties to an agreement accept a new debtor in place of an old one.
- Full substitution of the original borrower by a new, qualified borrower; releases the original maker of the loan from all liability.
- Substitute a new debt for an old debt cancelling the old debt. (Compare with "subrogation")
- Defeasance whereby the firm's debt is cancelled.
- An action that substitutes a new party and discharges one of the original parties to a contract, by agreement of all parties.
- A process by which counterparties may transfer derivatives positions.
