novation

noun no·va·tion \ nō-ˈvā-shən \

Definition of novation

: the substitution of a new legal obligation for an old one

Recent Examples of novation from the Web

Under the rules in six large EU member states analysed by the International Swaps and Derivatives Association (ISDA), a global trade body, novations and compressions would be considered regulated activities.

— The Economist, "Standing novationsBrexit will give the derivatives market a nasty headache," 12 Oct. 2017

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'novation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of novation

borrowed from Latin novātiōn-, novātiō, from novāre "to make new, renew, replace an existing legal obligation with a new one" (derivative of novus "new") + -tiōn-, -tiō, suffix of verbal action — more at ¹new

NEW! Time Traveler

First Known Use: 1682

in the meaning defined above

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Law Dictionary

novation

noun no·va·tion \ nō-ˈvā-shən \

legal Definition of novation

: the substitution by mutual agreement of one obligation for another with or without a change of parties and with the intent to extinguish the old obligation