Meaning of “novation” in the English Dictionary

Business

"novation" in Business English

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novationnoun [ C or U ]

uk /nəʊˈveɪʃən/ us

LAW a situation in which all the parties to a contract (= everyone involved in it) agree that a person named in the contract can be changed for another person, or agree to changes in its conditions:

The most important fact to note is that novation requires the consent or acceptance of all parties to the relevant contract.

(Definition of “novation” from the Cambridge Business English Dictionary © Cambridge University Press)