Novation

Novation is a legal process where an existing contract is replaced with a new one, transferring the rights and obligations from one party to another. This means that one party is fully relieved of their responsibilities, and a new party takes on those duties. Novation typically requires the consent of all parties involved, making it a formal, binding agreement. It’s commonly used in business transactions and financial agreements to ensure that obligations are met by the right parties, and it maintains the integrity of the original agreement while allowing for necessary changes.