novation

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Novation

Novation

1. The transfer of a contract from one party to another by mutual consent of the original counterparties and the concurrence of the new party.

2. See: Rollover.

novation

The substitution of one debt with another debt.

novation

The substitution of a new contract, debt, or obligation for an existing one. Usually encountered when a tenant assigns the lease to another,or when a new building owner requires all existing tenants to execute novation agreements.The effect is to extinguish all obligations under the old agreements and replace them with the new obligations.

References in periodicals archive ?
All trades intermediated by LBDP will be closed out or novated.
When the Principal Works Contractor is in place, it is anticipated that the Stone Supply Contract will be novated to it.
BCI") today announced that operating leases for two Boeing 737-200 aircraft previously on lease to Aloha Airlines have been novated to Aloha Air Cargo.
This contract may be novated to Cornwall Council in the future and the ITT is based on the Council~s procurement template and new public contracts regulations 2015, which allows a 35 day advertising period for e-tenders.
Primarily, an assignment assumption agreement has been executed as of July 2, 2007, whereby the majority of the company's assets and liabilities were novated to a newly formed South Carolina captive insurance company.
The contract for the management of the system was novated from Sligo/Leitrim to the NTA in December 2013.
However, HRI has become fully liable for all obligations of both entities, which were re-registered as unlimited companies, and most reinsurance contracts have been commuted or novated to HRI.
It is intended that the contract will be awarded by TWUL but the right is reserved for the contract to be awarded by the Infrastructure Provider ( IP ) or for the awarded contract to be novated or assigned to the IP in due course.
The overall project is a Novated Design and Build Contract under the terms of the JCT 2011 form of contract.