novation

noun

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no·va·tion | \ nō-ˈvā-shən

Definition of novation

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

Examples of novation in a Sentence

Recent Examples on the Web The contract novation will be subject to the consent of FSA. — Adam S. Minsky, Forbes, 28 Sep. 2021 That new student loan servicer — which collects student loan payments and manages customer service for student loans — may be a company called Maximus, with whom Navient signed a novation agreement to transfer servicing. — Zack Friedman, Forbes, 29 Sep. 2021 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, 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.

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“Novation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/novation. Accessed 15 Aug. 2022.

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More Definitions for novation

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 no evidence that the contract was assigned, or that there was a novation — Boccardi v. Horn Constr. Corp., 612 N.Y.S.2d 180 (1994) — compare accord sense 3, substituted contract at contract