Definition

To replace an existing obligation or contract with a new one, transferring the rights and responsibilities to a new party.

Example

The company decided to novate the contract to a different supplier to improve efficiency.

Tense Forms

Conversation

I heard you’re trying to novate your loan this month.

Yeah, I want to get a better interest rate if possible.

That makes sense; it can really help save money in the long run.

Exactly! Plus, it feels good to novate and improve my financial situation.

Synonyms & Antonyms

Root Explanation

Novate → It is formed from "novus" (meaning new) and the suffix "-ate" (indicating to make or to cause). The word "novate" means to make something new, particularly in the context of replacing an old obligation with a new one.

Memory Tip

Think of 'new' ('novus') and remember that to 'novate' means to make something new, especially in legal or financial contexts.

Visually Confused Words