Novation
Legal concept of substituting a new contract in place of an old one / From Wikipedia, the free encyclopedia
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This article is about the legal term. For other uses, see Novation (disambiguation).
Not to be confused with Novatian.
Novation, in contract law and business law,[1] is the act of –
- replacing an obligation to perform with another obligation; or
- adding an obligation to perform; or
- replacing a party to an agreement with a new party.
In international law, novation is the acquisition of territory by a sovereign state through "the gradual transformation of a right in territorio alieno [in foreign territory] into full sovereignty without any formal and unequivocal instrument to that effect intervening".[2]