Novation agreements
The function of a novation agreement is to substitute one of the parties to a contract, so that a new person takes on the rights and obligations of that party under the contract, while the other party to the contract remains in place. Accordingly, these novation agreements assume that there will be three parties signing: the transferor, the transferee and the counterparty. Novation agreements such as these are widely used in the context of business sales.
Novation agreement
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Version | 1.1 |
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First published | 14 Jun 2019 |
Last updated | 18 Jan 2023 |
Word count | 1,258 |
Template pages | 3 |
Novation agreement (ab initio)
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Version | 1.2 |
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First published | 14 Jun 2019 |
Last updated | 18 Jan 2023 |
Word count | 1,285 |
Template pages | 3 |
Compare contents
Novation agreement contents
- Definitions: definitions.
- Novation: transferee's obligations re novation; counterparty's obligations re novation; releases upon novation; pre-existing claims on novation.
- Indemnity: first party indemnifies second party upon breach of novated contract.
- Third party rights: third party rights: benefit; third party rights: exercise of rights.
- Counterparts: counterparts.
- Law and jurisdiction: governing law; jurisdiction.
ATTACHMENT 1 (COPY OF TRANSFERRING CONTRACT)
- Prompt to insert transferring contract.
Novation agreement (ab initio) contents
- Definitions: definitions.
- Novation: transferee's obligations re novation ab initio; counterparty's obligations re novation ab initio; releases upon novation ab initio.
- Indemnity: first party indemnifies second party upon breach of novated contract.
- Third party rights: third party rights: benefit; third party rights: exercise of rights.
- Counterparts: counterparts.
- Law and jurisdiction: governing law; jurisdiction.
ATTACHMENT 1 (COPY OF TRANSFERRING CONTRACT)
- Prompt to insert transferring contract.