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Novation
Legal concept of substituting a new contract in place of an old one / From Wikipedia, the free encyclopedia
This article is about the legal term. For other uses, see Novation (disambiguation).
Not to be confused with Novatian.
Novation, in contract law and business law,[1] is the act of –
- replacing an obligation to perform with another obligation; or
- adding an obligation to perform; or
- replacing a party to an agreement with a new party.
In international law, novation is the acquisition of territory by a sovereign state through "the gradual transformation of a right in territorio alieno [in foreign territory] into full sovereignty without any formal and unequivocal instrument to that effect intervening".[2]