Novation Contract

This Novation Contract is for use when transferring the rights, obligations and benefits of one party under a contract to another person or organisation. The consent of all three parties (substitute, retiring and contracting) is required in order for the novation to take effect. A novation should not be confused with an assignment of contract; in a novation, the third party effectively replaces the original party as a party to the contract. A written Novation Agreement will prove valuable in the event of disagreements, misunderstandings or litigation. (continued ...)