Novation: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
Line 1: | Line 1: | ||
{{g}}An layperson’s terms a [[novation]] is the transfer in full of one | {{g}}An layperson’s terms a [[novation]] is the transfer in full of one party’s rights and obligations under a {{t|contract}} to another person. The other party to the original contract stays put. | ||
Unlike an [[assignment]], a [[novation]] requires the agreement of all three parties (the exiting party, the incoming party and the party staying put). A party to an [[English law]] {{t|contract}} may “[[assign]]” its ''[[right]]s'' to a third person without its counterparty’s permission (as long as the contract does not forbid it); however, it cannot unilaterally assign its '''[[obligation|obligations]]''' under [[English law]]. | Unlike an [[assignment]], a [[novation]] requires the agreement of all three parties (the exiting party, the incoming party and the party staying put). A party to an [[English law]] {{t|contract}} may “[[assign]]” its ''[[right]]s'' to a third person without its counterparty’s permission (as long as the contract does not forbid it); however, it cannot unilaterally assign its '''[[obligation|obligations]]''' under [[English law]]. |