novation
novation — noun
1. a legal process in which one financial or contractual duty is replaced by a diff
a legal process in which one financial or contractual duty is replaced by a different one, so that the original duty ends and the new one takes effect — often between the same parties
The construction firm signed a novation to replace its loan with a new payment plan.
replace its bank loan with a new payment plan
Landlord and tenant used a novation to change monthly rent to a yearly payment.
Under the novation, the old debt was cancelled and a new obligation took its place.
The judge accepted the novation when the debtor offered equipment to settle the cash debt.
Putri's accounting team prepared the novation documents to change the loan repayment schedule.
- substitution
less formal and not limited to legal contexts; novation is the specific legal term for replacing an obligation
- replacement
a general word; novation carries additional legal weight and requires mutual consent
- breach
breaking an obligation instead of replacing it by agreement
文法句型
novation + of + noun
novation + between + noun
用法筆記
Typically appears in formal legal and financial documents. Distinguish from Sense 2: Sense 1 focuses on replacing the obligation itself, while Sense 2 focuses on replacing a party to the contract.
常見錯誤
2. a legal arrangement in which all participants in a contract consent to substitut
a legal arrangement in which all participants in a contract consent to substitute an existing member with a different person or company, so that the new member assumes every right and duty
Rafael agreed to a novation letting the new buyer take over his supply contract.
new buyer take over his contract
The bank approved a novation that replaced the original borrower with a more creditworthy company.
The three parties used a novation to move the lease to a new tenant.
Without a novation, the new partner would not be responsible for the firm's debts.
The supplier accepted the novation when the restaurant chain sold its business to Mert's group.
- substitution of parties
a descriptive phrase rather than a single-word synonym
- contract transfer
broader term that may include assignment; novation is a specific type requiring all parties' consent
文法句型
novation + between + parties
novation + of + contract
用法筆記
Frequently involves three parties: the original party being replaced, the new party, and the remaining party who must give consent. The key difference from assignment is that novation transfers obligations (duties), not just rights.