Be Wise › Contract glossary › Novation
Novation
Novation replaces one party to a contract with another, transferring both rights and obligations. It needs the consent of all parties, usually through a short novation agreement.
In more detail
Unlike an assignment, a novation releases the outgoing party from its obligations.
Put it into a contract
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England & Wales appScotland appReviewed 2026-09-24. General legal information, not legal advice.