Discharge by Novation

Discharge by novation occurs when an original contract is replaced by a new contract involving different parties or terms. In this process, the original party's obligations are transferred to a new party, effectively releasing the original party from their responsibilities. For example, if you hire a contractor but later want someone else to take over the job, a novation would require that both you and the contractor agree to this change, and that the new contractor accepts the existing obligations. This ensures that all parties consent to the new arrangement and that the original contract is voided.