novation

USAGE SUMMARY

The word "novation" is correct and usable in written English.
It is typically used in legal and business contexts to refer to the act of replacing an old obligation with a new one, transferring rights and duties. Example: "The parties agreed to a novation of the contract, allowing the new company to take over the obligations." Alternatives include "replacement of a contract" or "contract transfer."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

53 human-written examples

Buyers and sellers need to know promptly when the party on the other side of the trade changes, but they are being swamped, some with thousands of novation requests a day.

The Economist

Only half of all OTC interest-rate trades are automated.Other areas of focus include trade settlement and "novation" (when one party replaces another as buyer or seller of protection).

The Economist

We're going to see games around medical in- novation, that doctors are going to play".

The New York Times

At the heart of the issue is the legal process known as "novation" – where one party to a contract is replaced by another, allowing the contract to continue.

The Guardian

This means that if a contract is simply handed over or sold - as KPMG has implied it intends to do through novation - it is clear that the party who ends up carrying out the works was or may not have been the party who won the contract based on the "fair" and "transparent" criteria required by law.

The Guardian

But housing authorities are now bound by EU laws which make novation a far more complex business.

The Guardian

Novation is no less thorny.

The Economist

And in May, Senator Baucus wrote to the company to ask why it had canceled contracts with Novation, a group-purchasing organization.

The New York Times - Health

But for E.D.M. purists, chops trump everything, and a video showing Madeon's prestidigitation on the Novation Launchpad — an audio control panel with 64 blinking buttons — made him a sensation.

The New York Times - Arts

The pharmacy's sister company, Ameridose, which has also been closed, had supply contracts with five of the largest American hospital purchasing organizations: MedAssets, Novation, Premier, HealthTrust and Amerinet.

The New York Times

The group also said it would limit stock holdings by its employees and executives in medical product companies that hold Novation contracts.

The New York Times

Expert writing Tips

Best practice

When discussing legal agreements, use "novation" to precisely denote the replacement of an old contract with a new one. This term is particularly relevant in financial markets and legal documentation.

Common error

Avoid using "novation" interchangeably with "assignment". Novation requires consent from all parties to transfer both rights and obligations, whereas assignment only transfers rights, leaving the original party still liable for obligations.

Linguistic Context

The word "novation" primarily functions as a noun. Ludwig AI analysis confirms it denotes the replacement of a contract with a new one, especially in finance and law, as seen in Ludwig's examples about trade changes and legal processes.

Expression frequency: Very common

Frequent in

News & Media

40%

Formal & Business

35%

Science

10%

Less common in

Academia

5%

Encyclopedias

5%

Wiki

5%

Ludwig's WRAP-UP

The term "novation" is a grammatically sound noun with a specific meaning in legal and financial contexts, referring to the replacement of a contract with a new one. Ludwig AI confirms its common usage in formal settings like news, business, and legal documentation. While "novation" is often confused with "assignment", it uniquely involves the transfer of both rights and obligations, requiring all parties' consent. To avoid confusion, ensure precise usage, keeping its specific legal implications in mind.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

contract replacement

Focuses on the act of replacing one contract with another, simplifying the legal terminology.

substitution of contract

Highlights the act of substituting one contract for another, emphasizing the change.

contractual transfer

Emphasizes the transfer of rights and obligations within a contractual agreement.

assignment of contract

Indicates a transfer of benefits from one party to another, differing slightly from complete replacement.

contractual innovation

Implies creating something new within the framework of a contract.

reshaping agreement terms

Stresses the act of modifying the agreement's terms rather than a complete replacement.

modifying contractual obligations

Focuses on altering the obligations within a contract, rather than replacing the contract itself.

revising contract clauses

Highlights the revision of specific clauses within a contract, indicating a more granular change.

amending contract stipulations

Focuses on the amendment of stipulations, referring to a partial rather than a complete change.

overhauling agreement framework

Indicates a significant restructuring of the agreement's framework, suggesting a more extensive change than a simple replacement.

FAQs

What does "novation" mean in legal terms?

"Novation" refers to the act of replacing an existing contract with a new one, where all parties agree to transfer the rights and obligations of the original contract to a new party or set of terms.

How does "novation" differ from assignment?

While both involve transferring aspects of a contract, "novation" transfers both rights and obligations, requiring consent from all parties. Assignment only transfers rights, and the original party remains responsible for the obligations. See also "assignment of contract".

When is "novation" typically used?

"Novation" is commonly used in financial markets, mergers and acquisitions, and situations where a party needs to be completely replaced in a contractual agreement.

What are some alternatives to using the word "novation"?

Depending on the context, you can use alternatives such as "contract replacement", "substitution of contract", or "contractual transfer" to convey a similar meaning. See also "contract replacement", "substitution of contract" or "contractual transfer".