---
title: "Novation"
type: Legal Term
source: https://casebriefly.com/legal-terms/novation
---

# Novation

A novation is the substitution of a new contract for an existing one, either by replacing a party or by replacing the obligations under the agreement. Unlike an accord and satisfaction, a novation immediately extinguishes the prior obligation. All parties must consent to the novation for it to be effective. The key distinction from assignment or delegation is that in a novation, the original obligor is completely released from liability.

## Related Terms

- accord-and-satisfaction
- assignment
- delegation

## Related Cases


## Example

Tenant A assigns the lease to Tenant B with the landlord's consent. If the landlord agrees to release Tenant A entirely and look only to Tenant B, a novation has occurred.

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Source: [Novation — CaseBriefly](https://casebriefly.com/legal-terms/novation)