novation

EnglishEdit

 
English Wikipedia has an article on:
Wikipedia

EtymologyEdit

Borrowed from Latin novātiō (a renewing, rennovation), from novō, from novus (new). Compare novel, novelty.

PronunciationEdit

NounEdit

novation (countable and uncountable, plural novations)

  1. (law) Replacement of a contract with one or more new contracts, in particular in financial markets the replacement of a contract between a particular buyer and seller with contracts between the clearing house and each party.
  2. (law) A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.
    An example of a novation is where an original debt which was payable in two instalments is novated to become payable in five installments.

Related termsEdit

TranslationsEdit

The translations below need to be checked and inserted above into the appropriate translation tables, removing any numbers. Numbers do not necessarily match those in definitions. See instructions at Wiktionary:Entry layout § Translations.