The substitution of a new contract or obliga-tion between the same or different parties. Also, the substitution by mutual agreement of one debtor for another or one creditor for another whereby the existing debt is extinguished.
The substitution of a new contract for an old one; or the substitution of one party in a contract with another party. Also, the replacement of existing debt or obligation with a new one.
The substitution of one obligation for another.
The substitution of the clearing house for the opposite contracting party for a futures or Options contract. Such facility allows complete flexibility to enter or leave the market at will.
Substitution of a subsequent borrower in place of the original borrower, who is then released from liability. This must be done with the approval of the lender.
The process of exchanging one agreement for another. Novation, in simple terms, replaces one obligee ( borrower or tenant) in exchange for another. A common example of a novation occurs when the tenant under a lease agreement will replace himself, with the landlord's permission, with another person who will complete the terms of the original agreement. The original obligee is released and is no longer liable to the landlord in the event of default by the new tenant.
The incorporation into existing contracts of subsequent agreements or deals between the same parties, so that at all times only one contract remains outstanding between those parties.
(law) the replacement of one obligation by another by mutual agreement of both parties; usually the replacement of one of the original parties to a contract with the consent of the remaining party
an agreement by which a new party replaces one of the original parties to a contract, extinguishing the duties of the parties under the old contract and substituting a new contract between the remaining original party and the new party
a new agreement and is recognized in the law
a new contractual relation
The substitution of a new party and/or new terms to an existing obligation.
The process by which SFE Clearing (as do other Futures Exchanges) acts as counterparty for every trade, ie is a buyer for every futures contract sold and a seller for every futures contract bought
Assigning rights and obligations under a contract to another party, releasing the assignor of all liability previously held under the contract.
in an assignment situation, a novation is an agreement by the landlord, the original tenant, and the new tenant that makes the new tenant (rather than the original tenant) solely responsible to the landlord.
(1) the substitution of a new debt or obligation for a previous one. (2) the substitution of a new creditor or debtor for an old creditor or debtor.... read full article
the replacement, by agreement between the parties involved, of one obligation by another
The process or act of replacing a contract with a new one, while still retaining the same two parties to the contract.
When either a contract or party to a contract if replaced with a new contract or party.
The substitution of a new obligation for an old one.
Substituting a new obligation for an old one or substituting new parties to an existing obligation.
A three-party agreement whereby the original party is discharged from his or her obligations and a new party acquires the obligations. The result is that the old contract is terminated and the new contract, with the same content but with at least one different party, is created.
The substitution of a new contract for an old one;... Add a comment
Full substitution of the original borrower by a new, qualified borrower; releases the original maker of the loan from all liability.
The acceptance of a new contract in substitution for the old contract, with the intent that the new contract will extinguish the original contract. Sometimes encountered in transfers of deeds of trust, where the new owner assumes the debt and the lender, through novation, releases the former owner from any liability under the original promissory note and deed of trust. Back to the Top
To substitute a new debt for an old debt thereby canceling the old debt. See also subrogation.
A 3-party agreement whereby one party is re from a contract and another party is substituted.
From the root word Nova, meaning new. A novation is a total release of liability to the first borrower under a loan, and the substitution of a subsequent borrower; usually not automatic, requiring a lender’s approval (see assignment, assumption and subject-to).
discharges one contract but substitutes a new obligation between the parties
Agreement which extinguishes one obligation and replaces it with another.
Substitute a new debt for an old debt cancelling the old debt. (Compare with " subrogation")
The addition of any deals or agreements between two parties into an existing contract so that only one contract exists between the parties.
The transfer of rights and obligations from one contracting party (which is released of those obligations) to a third party with the agreement of all the contracting parties. See asset sale.
The substitution of a new party for another to an agreement with the obligatory release of the initial party.
1.The act of replacing one participating member of a contract with another. 2. The exchange of new debts or obligations for older existing ones.
The substitution of one agreement for another, or the substitution of parties to the agreement.
1: The substitution of an older debt or obligation with a newer one. See: Debt; Debt Security 2: An agreement to substitute one party to a contract with a new party. The new party has both the rights and obligations required by the original party. To make the transfer effective, consent of all parties is required.
