Definition[]
Novation is a term used in contract 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. A novation is valid only with the consent of all parties to the original agreement: the obligee must consent to the replacement of the original obligor with the new obligor. A contract transferred by the novation process transfers all duties and obligations from the original obligor to the new obligor.
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