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Vocabulary Entry
novation
|noun • verb
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N
noun
A legal term referring to the act of replacing an obligation or party in a contract with the consent of all parties involved.
Example Sentences
"The company entered into a novation agreement to transfer the lease to a new tenant."
"Novation can simplify legal obligations by legally substituting one party for another."
"In a novation, all parties must agree to the changes for them to be valid."
V
verb
To make a new contract that replaces an old one, involving a change in the parties or terms.
Example Sentences
"The parties novated their contract to reflect new terms agreed upon after negotiations."
"We decided to novate the agreement to include the new partner in the business."
"The team novated the deal to ensure compliance with the updated regulations."