Associations to the word «Novation»

Wiktionary

NOVATION, noun. (legal) 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.
NOVATION, noun. (legal) A new contract between the original contracting parties whereby the first obligation is extinguished and a new obligation is substituted.

Dictionary definition

NOVATION, noun. (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.

Wise words

Language is a process of free creation; its laws and principles are fixed, but the manner in which the principles of generation are used is free and infinitely varied. Even the interpretation and use of words involves a process of free creation.
Noam Chomsky