0 a situation in which all the parties to a contract (= everyone involved in it) agree that a person named in the contract can be changed for another person, or agree to changes in its conditions: --
Novation, as this is called, may also be inferred by the conduct of the parties such as where the terms of the original agreement are changed.
Prescription ends when novation occurs.
In this context, novation is considered a form of risk management.
There is a presumption against novation, so that where there is doubt the court prefers not to imply a novation.
Few judicial proceedings lead to novation; where they do, it is the damages awarded by the court that novate the contract.
A contract transferred by the novation process transfers all duties and obligations from the original obligor to the new obligor.
The first four of these acts are collectively termed a novation.
This process of transferring the trade title to the clearing house is called novation.
