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 ?
Historical gross losses by quarterly vintage for novated leases (cars) range from 0.3% to 1.6%; non-novated leases (cars) from 1.0% to 3.5%; trucks 0.5%-5.4%; equipment 0.2%-5.0%; and consumer 0.8%-5.0%.
the specialist should note that they will be novated to main contractor appointed for the project.
it is intended that all designers are novated to the contractor.
The contractor chosen will be required to build the scheme and employ a suitably qualified design team (including the novated design team commissioned by the client) to ensure the requirements of Pobl Group and any legal obligations in respect of designs are met.
future frameworks will cover supplies and works.(b) management of he frameworks will be novated to a new central purchasing body called sinfra (uk), closely associated with the swedish purchasing body sinfra;(c) the frameworks will be made available to other authorities, universities and hospital trusts.
contracts will be novated from the city council to sinfra (uk); (c) the frameworks will be made available to other authorities, universities and hospital trusts; (d) coverage will be uk wide.