Definition

The process of replacing an old obligation with a new one in legal terms.

Example

The company completed a novation to transfer its contract to a new partner.

Conversation

I was reading about how novation works in contracts.

Oh really? What does it mean exactly?

It's basically when a new obligation replaces an old one in a legal agreement.

That sounds interesting, it must be important for businesses!

Synonyms & Antonyms

Root Explanation

Novation is formed from "nova" (meaning new) and "-tion" (meaning the action or process of). The word refers to the process of replacing an old obligation with a new one, thus creating something new in a legal context.

Memory Tip

Think of 'new' ('nova') and remember that 'novation' means the process of creating a new obligation.

Visually Confused Words