novation(redirected from novations)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.
2. See: Rollover.
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.