Novation Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Novation, written in plain English, along with examples of how it is used.

What is Novation?

A contract agreed upon by the concerned parties to replace an old contract with a new one which terminates the old contract.It is done to improvise on the performance level and change the payment strategy or the debtor will be forced to go bankrupt.It is a solution to pay off the debts.\*